THE KIRTLAND SAFETY SOCIETY BANK

Such were the general conditions prevailing throughout the United States—conditions which affected the industrial and business enterprises of the Latter-day saints in Ohio, in common with other people, and contributed to their failure; but the failure in the case of the saints was magnified out of all just proportions. Especially is this the case in the matter of what is called "The Kirtland Bank" failure, the history of which is as follows: In November, 1836, a number of brethren including the presidency and other leading elders of the church, applied to the Ohio state legislature for a charter for a bank, to be known as the "Kirtland Safety Society Bank;" but on account of religious prejudice it is supposed, the legislature refused to grant the charter. Meantime, confident of getting the charter, Oliver Cowdery had been sent to Philadelphia as the agent of the proposed banking institution and had plates engraved on which to print the proposed bank's currency. Failing to get the charter for a bank, the saints organized a "Stock Industrial Company" called the "Kirtland Safety Society Anti-Bank-ing Company," under which they "proposed the management of their respective occupations," consisting of "agriculture, mechanical arts and merchandising." By the articles of agreement the individual members of said society held themselves bound for the redemption of all notes given by it in proportion to the amount of stock subscribed. And this article was made unalterable, (see Art. 16). In issuing their notes the "Kirtland Safety Society" doubtless made a mistake in that they used the notes printed from the plates prepared for their anticipated bank issue, using a stamp to make the notes read—Anti-Bank-ing Co., instead of "Kirtland Safety Society Bank." This to avoid the necessity of incurring the expense of making new plates; but anti-"Mormon" writers have attributed a sinister motive to the action. The "Kirtland Safety Society" enterprise ended disastrously. Having no state charter the notes of the "society" had no legal standing as currency, and were soon rejected by its creditors in New York, Pittsburg and Cleveland, where merchandise for the stores in Kirtland had been purchased on credit, in large quantities, and for which the "society," its notes being rejected, was unable to pay. Prices in real estate rapidly declined so that the large farms purchased by the "society" on credit and platted for a city could not be sold but at great loss; and the financial disasters that had swept over the whole country still paralizing all branches of business activity, the "Kirtland Safety Society" failed with thousands of other business concerns of 1837, and involved many members of the church in financial distress.

Nor was this the worst of their calamities. Pride and worldly mindedness among the saints had preceded some of their financial difficulties, and when their troubles came thick upon them they accused each other of all kinds of sin and folly; there were evil surmisings, bickerings, fault-finding, false accusations and bitterness, until the spirit of the gospel in Kirtland was well nigh eclipsed. The Prophet especially was censured. It was reported that the "bank" had been "instituted by the will of God," i. e., by revelation, "and would never fail, let men do what they would." This the Prophet denied in open conference, saying that "if this had been declared no one had authority from him for doing so;" and added that he "had always said that unless the institution was conducted on righteous principles it would not stand." Many, however, became disaffected toward the Prophet, "as though I were the sole cause," he writes, "of those very evils I was most strenuously striving against, and which were actually brought upon us by the brethren not giving heed to my counsel." Matters went on from bad to worse, apostasy was rife even among some of the high church officials. In March, 1837, the Prophet as treasurer, Sidney Rigdon as secretary of the ill-fated "Kirtland Safety Society," were arrested upon a charge of violating the banking laws of the state. They were adjudged guilty in the Geauga county court, but appealed from the decision on the ground that the "Kirtland Safety Society" was not a bank. This question was never ruled upon by the courts, as both Sidney Rigdon and the Prophet were compelled to flee the state for security of their personal safety from false brethren, before the case could be heard.