Accordingly, the Elders were sent into the country to barter off Kirtland money, which they did with great zeal, and continued the operation until the notes were not worth twelve and a half cents to the dollar." 1 Just how much of this currency was issued the records do not show. Hall says that Brigham Young, who had joined the flock at Kirtland, disposed of $10,000 worth of it in the States, and that Smith and other church officers reaped a rich harvest with it in Canada, explaining, "The credit of the bank here was good, even high."2 Kidder quotes a gentleman living near Kirtland who said that the cash capital paid in was only about $5000, and that they succeeded in floating from $50,000 to $100,000. Ann Eliza, Brigham's "wife No. 19," says that her father invested everything he had but his house and shop in the bank, and lost it all. Cyrus Smalling, one of the Seventy at Kirtland, wrote an account of Kirtland banking operations under date of March 10, 1841, in which he said that Smith and his associates collected about $6000 in specie, and that when people in the neighborhood went to the bank to inquire about its specie reserve, "Smith had some one or two hundred boxes made, and gathered all the lead and shot the village had, or that part of it that he controlled, and filled the boxes with lead, shot, etc., and marked them $1000 each. Then, when they went to examine the vault, he had one box on a table partly filled for them to see; and when they proceeded to the vault, Smith told them that the church had $200,000 in specie; and he opened one box and they saw that it was silver; and they were seemingly satisfied, and went away for a few days until the elders were packed off in every direction to pass their paper money.' Smith believed in specie payments to his bank, whatever might be his intentions as regards the redemption of his notes, for, in the Messenger and Advocate (pp. 441-443), following the by-laws of the Anti-banking Company, was printed a statement signed by him, saying: "We want the brethren from abroad to call on us and take stock in the Safety Society, and we would remind them of the sayings of the Prophet Isaiah contained in the 60th chapter, and more particularly in the 9th and 17th verses which are as follows: 166 Mormonism Portrayed," p. 31. 2 "Abominations of Mormonism Exposed" (1852), pp. 19, 20. 666 'Surely the isles shall wait for me, and the ships of Tarshish first, to bring thy sons from far, their silver and their gold with them, unto the name of the Lord thy God.' 666 For brass I will bring gold, and for iron I will bring silver,' etc." The Messenger and Advocate (edited by W. A. Cowdery), of July, 1837, contained a long article on the bank and its troubles, pointing out, first, that the bank was opened without a charter, being "considered a kind of joint stock association," and that "the private property of the stockholders was holden in proportion to the amount of their subscriptions for the redemption of the paper," and also that its notes were absolutely void under the state law. The editor goes on to say: "Previously to the commencement of discounting by the bank, large debts had been contracted for merchandise in New York and other cities, and large contracts entered into for real estate in this and adjoining towns; some of them had fallen due and must be met, or incur forfeitures of large sums. These causes, we are bound to believe, operated to induce the officers of the bank to let out larger sums than their better judgments dictated, which almost invariably fell into or passed through the hands of those who sought our ruin. . . . Hundreds who were enemies either came or sent their agents and demanded specie, till the officers thought best to refuse payment." This subtle explanation of the suspension of specie payments is followed with a discussion of monopolies, etc., leading up to a statement of the obligations of the Mormons in regard to the discredited bank-notes, most of which were in circulation elsewhere. To the question, "Shall we unite as one man, say it is good, and make it good by taking it on a par with gold?" he replies, "No," explaining that, owing to the fewness of the church members as compared with the world at large, "it must be confined in its circulation and par value to the limits of our own society." To the question, "Shall we then take it at its marked price for our property," he again replies, "No," explaining that their enemies. had received the paper at a discount, and that, to receive it at par from them, would "give them voluntarily and with one eye open just that advantage over us to oppress, degrade and depress us." This combined financial and spiritual adviser closes his article by urging the brethren to set apart a portion of their time to the service of God, and a portion to "the study of the science of our government and the news of the day." A card which appeared in the Messenger and Advocate of August, 1837, signed by Smith, warned "the brethren and friends. of the church to beware of speculators, renegades, and gamblers who are duping the unwary and unsuspecting by palming upon them those bills, which are of no worth here." The actual test of the bank's soundness had come when request was made for the redemption of the notes. The notes seem to have been accepted freely in Pittsburg, Pennsylvania, where it was taken for granted that a cashier and president who professed to be prophets of the Lord would not give countenance to bank paper of doubtful value.1 When stories about the concern reached the Pittsburg banks, they sent an agent to Kirtland with a package of the notes for redemption. Rigdon loudly asserted the stability of the institution; but when a request for coin was repeated, it was promptly refused by him on the ground that the bills were a circulating medium "for the accommodation of the public," and that to call any of them in would defeat their object.2 Other creditors of the Mormons were now becoming active in their demands. For failing to meet a note given to the bank at Painesville, Smith, Rigdon, and N. K. Whitney were put under $8000 bonds. Smith, Rigdon, and Cowdery were called into court as indorsers of paper for one of the Mormon firms, and judgment was given against them. To satisfy a firm of New York merchants the heads of the church gave a note for $4500 secured by a mortgage on their interest in the new Temple and its contents. The Egyptian mummies were especially excepted from this mortgage. Mother Smith describes how these relics were saved by "various stratagems" under an execution of $50 issued against the prophet. The scheme of calling the bank corporation an "anti-banking" society did not save the officers from prosecution under the state law. Informers against violators of the banking law received in Ohio a share of the fine imposed, and this led to the filing of an information against Rigdon and Smith in March, 1837, by one S. D. Rounds, in the Geauga County Court, charging them with violating the law, and demanding a penalty of $1000. They were at once 166 Rocky Mountain Saints," p. 71. 3 Ibid., pp. 159–160. |