I think the thought is states can deal in silver and gold and depositors will be protected vs having dollars in federal banks that go bankrupt where they will lose depositors,' money
Okay so I looked into this and this article is really making this decision out to be something it isn't.
After actually reading the decision, this case was about mortgages issued by Bank of America, a national bank, in the state of New York. New York has a law that says banks that issue mortgages with escrow accounts in the state have to pay interest on those accounts. Bank of America argued that because it was a national bank, it did not have to abide by the New York law because state laws could not regulate national banks, and therefore it didn't have to pay the interest.
The decision the Supreme Court made said that there are two kinds of banks, national banks and state banks. That's the "dual system of banking" the article is talking about. This two tiered system means a state can't make a law that impedes a national banks ability to operate as a national bank, which is what Bank of America argued the New York law was doing.
Initially the court ruled that the New York did NOT prevent Bank of America from acting as a national bank siding with the plaintiff. BoA appealed and the appeals court overturned the decision. Finally, the Supreme Court overruled the appeals court, deciding that the New York law was legal and gave guidance to the lower courts for making similar rulings in the future. That's all the ruling was about.
As for the silver and gold thing, this ruling has nothing to do with it. Currently, several states have toyed with the idea of creating gold banked notes, but none have actually gone through with it. So essentially it would probably come down to the courts to clarify article 1, section 10 of the constitution, but my guess is that any state that actually tried would eventually be be shot down for creating a currency.
I think the thought is states can deal in silver and gold and depositors will be protected vs having dollars in federal banks that go bankrupt where they will lose depositors,' money
Okay so I looked into this and this article is really making this decision out to be something it isn't.
After actually reading the decision, this case was about mortgages issued by Bank of America, a national bank, in the state of New York. New York has a law that says banks that issue mortgages with escrow accounts in the state have to pay interest on those accounts. Bank of America argued that because it was a national bank, it did not have to abide by the New York law because state laws could not regulate national banks, and therefore it didn't have to pay the interest.
The decision the Supreme Court made said that there are two kinds of banks, national banks and state banks. That's the "dual system of banking" the article is talking about. This two tiered system means a state can't make a law that impedes a national banks ability to operate as a national bank, which is what Bank of America argued the New York law was doing.
Initially the court ruled that the New York did NOT prevent Bank of America from acting as a national bank siding with the plaintiff. BoA appealed and the appeals court overturned the decision. Finally, the Supreme Court overruled the appeals court, deciding that the New York law was legal and gave guidance to the lower courts for making similar rulings in the future. That's all the ruling was about.
As for the silver and gold thing, this ruling has nothing to do with it. Currently, several states have toyed with the idea of creating gold banked notes, but none have actually gone through with it. So essentially it would probably come down to the courts to clarify article 1, section 10 of the constitution, but my guess is that any state that actually tried would eventually be be shot down for creating a currency.