Today we’re taking a look at just one aspect of Joseph Smith’s life. We want to determine if his actions in 1836-1837 are the mark of a prophet or con-man. We believe the evidence presented here shows that Smith was nothing but the latter.

The financial collapse of 1836-1837 left America reeling, exempting no one from the ugly clutches of debt and despair. Everyone knew they were in the same boat; everyone that is, but Joseph Smith. Extraneous events apart from his agenda were of little concern to him, unless of course, he needed a little help from those who were really in charge. When things didn’t go quite the way he hoped, he surmised anti-Mormons were surely to blame and rejected any idea the American economy was in the tank.

Finally, in November 1836 after months of failed attempts to fix their economic status from within, the Church decided to come to terms with events they had no control over. To pull themselves out of the financial disaster they created, Smith and company came up with an ingenious scheme to establish a new bank and rob people at the same time.

They named their new banking system ‘The Kirtland Safety Society’. The given name of their charade makes their behavior all the more damning when it’s done so in the guise of proclaiming they’re men of God.

At a major meeting to announce their new adventures and after the necessities of reading a 16 point Articles of Agreement aloud were finished, with two-thirds of members in attendance, Smith speaking through the Holy Spirit no less, told everyone God would immeasurably bless them if they took stock in their safety society. In addition to all that, Smith was elected treasurer and Rigdon became secretary. Millennial Star, Vol. 15, No. 52, pp. 843-845.

Ebenezer Robinson, a new faithful convert who worked in the Church’s printing office noted in his diary the Church’s new Articles of Agreement outlining how their new monetary system would work. Out of the 16 articles, #14 is the most important;

“Art. 14th. All notes given by said society shall be signed by the treasurer and secretary thereof, and we, the individual members of said firm, hereby hold ourselves bound for the redemption of all such notes.”

That promise is what got Smith into a boatload of trouble when he failed to pay back money Church members loaned out to him, but more on that later.

In order to establish the banking system and make a way for people to borrow money so they could purchase land parcels in the area, Smith sent two of his trusted men (Hyde &  Cowdery) on missions of sorts. Hyde was sent to Columbus, OH to appeal to the legislature and secure a banking charter.

Ol’ Joe didn’t take into account the economy was still pregnant with apprehension; jobs were scarce and only one bank charter had been granted in a two year period of time.

Cowdery was sent to purchase plates they could use to print their way out of debt and he didn’t come back empty handed. He procured the plates in addition to more than $200,000 in freshly printed bank bills, with the first installment of usable bank notes totaling somewhere between $10-15k. The beautiful paper money was a sight for the Saint’s sore eyes who could use a little bit of good news about their future.

The problem? Hyde’s request for a charter was denied making the money worthless. Undaunted, the Church took measures into their own hands. They made adjustments to their pretty money by placing the word ‘anti’ before bank, and ‘ing’ afterwards. In their mind this adjustment smoothed things over and prevented any lawsuits from the feds. They presented their anti-banking company as a private organization and as already noted, came up with 16 Articles of Agreement on how things would operate.

On January 2, 1837 the Kirtland Anti-Banking Company was officially organized as a joint stock company and their newly printed bank bills were put into circulation. Part of their meeting notes can be found in the Messenger and Advocate. As you can see, Smith had no qualms in telling those in attendance that obeying his command is what God required.

Messenger and Advocate, Vol. 3, No. 4, January 1837, p. 443; “In connexion [connection] with the above Articles of Agreement of the Kirtland Safety Society, I beg leave to make a few remarks to all those who are preparing themselves, and appointing their wise men, for the purpose of building up Zion and her Stakes. It is wisdom and according to the mind of the Holy Spirit, that you should call at Kirtland, and receive counsel and instruction upon those principles that are necessary to further the great work of the Lord, and to establish the children of the Kingdom, according to the oracles of God, as they are had among us. And further, we invite the brethren from abroad, to call on us, and take stock in our Safety Society.”

Using Isaiah chapters 60, 62 Smith prophesied people would forego awful events if they obeyed God and promised to build up the kingdom. Of course the best way to build it up was to pony up! HC 2:471, 473.

These revelations from God to establish the bank are also recorded in Wilford Woodruff’s Diary printed in the Painseville Republican, February 15-22, 1838;

“I have listened to him with feelings of no ordinary kind, when he declared that the audible voice of God, instructed him to establish a Banking-Anti Banking institution, which like Aaron’s rod should swallow up all other Banks (the Bank of Monroe excepted,) and grow and flourish and spread from the rivers to the ends of the earth, and survive when all others should be laid in ruins.” – Wilford Woodruff

You can also find it in Conflict at Kirtland, p. 297.

Note: HC gives the date for the Messenger and Advocate info as January 1837. The Messenger and Advocate gives the date as April 1837. Messenger and Advocate, Vol. 3, No. 7, April 1837, p. 488.

Latter-day Saint Messenger & Advocate, April 1837, pg. 488; “He then closed at about 4 P. M. by uttering a prophesy saying this place must be built up, and would be built up, and that every brother that would take hold and help secure and discharge those contracts that had been made, should be rich.”

The problem with this is pretty obvious. It’s not the same text and again, Smith is promising people they’d get rich if they give money. After all the talk and empty promises Smith decided to move into action.

In order to convince people KSS (Kirtland Safety Society) had money to loan Smith set up a room for people to come and see the boxes of money for themselves. What they didn’t know is that he was conning them before their very eyes. Dr. Wyl wrote the following in Mormon Portraits, p. 36;

“Lining the shelves of the [Kirtland Safety Society] bank vault… were many boxes, each marked $1,000. Actually these boxes were filled with ‘sand, lead, old iron, stone, and combustibles’ but each had a top layer of bright fifty‑cent silver coins. Anyone suspicious of the bank’s stability was allowed to lift and count the boxes. ‘The effect of those boxes was like magic;’ said C.G. Webb. ‘They created general confidence in the solidity of the bank and that beautiful paper money went like hot cakes. For about a month, it was the best money in the country.” – W. Wyl

By February 1, 1837 their anti-banking gig was up. Within two weeks of opening they suspended all redemption of its paper notes for gold or silver which caused its value to deflate, making its worth only 1/8^th of its original value. (Brother Joseph: Seer of a New Dispensation, Vol. 2, Richard Skousen, Cleon Skousen)

On February 2, 1837 a writ was issued for the arrest of Joseph Smith and Sidney Rigdon for illegal banking, but lucky for them they had already skipped town and fled for Missouri. Joe’s M.O. was playing itself out for all to see once again. He breaks the law, blames outsiders for anti-Mormon behavior and then flees without being man enough to own up to his problems.

Running from the law and creditors along with the other shenanigans they pulled off, didn’t set too well with the majority of followers. The numerous lawsuits filed against Smith and company speaks to the mass exodus taking place during this time. Even Parley Pratt who ended up staying in the Church couldn’t hold back his thorough disgust with Smith and demanded he get the money back Smith had swindled from him. In addition to Pratt’s unhappiness there were several other lawsuits filed against Smith in mid 1837.

No Man Knows My History, pp 199-200; “Thirteen suits were brought against him between June 1837 and April 1839, to collect sums totaling nearly $25,000. The damages asked amounted to almost $35,000. He was arrested seven times in four months…only six [suits] were settled out of court — about $12,000…” – Fawn Brodie

By the time April rolled around Smith was still spewing out false prophecies and dangling that infamous carrot before the eyes of his followers. He promised if they could just hold on a little bit longer they’d all be rich! Latter-day Saint Messenger & Advocate, Vol. 3, No. 7, p 488  In the meantime, even more warrants were issued for Smith’s arrest and a posse was sent out to capture him on April 13, 1837.

July was a busy, busy time for Mr. Smith. He was found not guilty on charges of the attempted murder of Grandison Newell so he and Rigdon went back to Kirtland, but they weren’t there long.

In addition to that huge event in life, Smith resigned as treasurer of Kirtland Anti-Banking Safety Society HC 2:497. And then on the 23^rd he was spewing out epithets against all living inhabitants on earth for going against ‘God’s plan’. This set off a flurry of infighting and blaming Smith for the banking failure. D&C 112:24, A Comprehensive History of the Church 1:402-403

In Kirtland, OH, October 1837 came and went along with Joe Smith and Sidney Rigdon. While other warrants were being issued on illegal banking charges, they saw fit to hightail it to Missouri because he wasn’t too keen on church events transpiring there and he wasn’t fond of jail cells either. He and Rigdon were found guilty of illegal banking and fined $1,000 each.

In November 1837 KSS (Kirtland Safety  Society) was officially out of business.

There’s simply no other way to see this activity outside of being a total disaster. Smith’s reputation preceded his arrival no matter where he lived, but one thing you could count on for sure. If Smith was involved, trouble would certainly make an appearance. Sadly, these historical atrocities aren’t examined in the annals of Mormon teaching manuals. No one stops to say ‘why did he always have arrest warrants out on him’.

Whenever I think of Joe Smith I’m reminded of the character in Charlie Brown’s Peanuts cartoons. No matter where Pig Pen went there was a ball of dust surrounding him. Smith had the same problem, but his ball of dust consisted of lawsuits, fraud, theft, murder, polygamy scandals, arrest warrants and heretical teachings.

He’s not the kind of guy you’d want to see on your doorstep asking if your daughter is home.

Michelle Grim

1 Cor 1:18