History of Utah, 1540-1886 - Brigham Young University

AFFAIRS AT KIRTLAND. 113
buying merchandise in New York and elsewhere in
excess of their ability to pay. They built a steammill,
which proved a source of loss, and started ^ a
bank, but were unable to obtain a charter; they issued
bills without a charter, however, in consequence
of which they could not collect the money loaned,
and after a brief struggle, and during a period of
great apostasy, the bank failed. It was called the
Kirtland Safety Society Bank, of which Rigdon was
president and Smith cashier. All this time, writes
Corrill, "they suffered pride to arise in their hearts,
and became desirous of fine houses and fine clothes,
and indulged too much in these things, supposing for
a few months that they were very rich." Upon the
failure of the bank in 1838, Smith and Rigdon went
to Missouri, leaving the business in the hands of others
to wind up. 3
3 ' They also suffered jealousies to arise among them, and several persons
dissented from the church, and accused the leaders of the church with bad
management, selfishness, etc On the other hand, the leaders of the church
accused the dissenters with dishonesty, want of faith and righteousness,. .
and this strife or opposition arose to a great height, . . . until Smith and Rigdon
were obliged to leave Kirtland.' Corrill, in Kidder's Mormonism, 126-7.
'Subsequently they had a revelation,' another says, 'commanding them to
establish a bank, which should swallow up all other banks. This was soon
got into operation on a pretended capital of four millions of dollars, made up
of real estate round about the temple.' John Hyde, Mormonism, 201, says
that the bank, a store, and mill were started in Aug. 1831. Before me is
one of their bills, dated Jan. 17, 1837, payable to C. Scott, or bearer.
Mather says, LippincoU's Mag., Aug. 1880: 'Richard HUliard, a leading
merchant of Cleveland, received their bills for a few days, and then took
possession of all their available assets. They were also in debt for their
farms, and for goods bought in New York. The bubble burst, and many in
the vicinity of Kirtland were among the sufferers. Smith and Rigdon fled
to Far West, after having been tarred and feathered for their peculiar theories
of finance.' 'Chauncey G. Webb (father of Ann Eliza Young) assisted
in founding this bank, giving Smith all he possessed outside of his house and
shop toward completing the amount necessary for a capital on which to start
the new enterprise. With the failure of the bank Webb lost everything.'
Young's Wife No. 19, 33, 40-41; see account of formation of bank in Bennett's
Mormonism, 135-6. 'Smith had a sort of bank issue on what was then
called the wild-cat principle. His circulating medium had no redeeming
basis, and was worthless in the hands of the people.' Tucker's Mormonism,
154-5. 'Smith had a revelation from the Lord, to the effect that his bank
would be a pattern of all the banks in the United States, that it would
speedily break, and that all the rest would follow the example. The bank
was closed the same day.' Hall's Mormonism, 19. The bank failed in Nov.
1837. Remy's Journey, i. 504; Busch, Gesch. der Morm., 84. 'By means of
great activity and an actual capital of about §5,000, they succeeded in setting
afloat from $50,000 to 8100,000. The concern was closed up after
Hist. Utah. 8
.