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Golembe, State Banks and the Economic Development of the West, 50; Howard Bodenhorn, A History of Banking, 117.
Golembe, Carter H. State Banks and the Economic Development of the West 1830–1844. New York: Arno, 1978.
Bodenhorn, Howard. A History of Banking in Antebellum America: Financial Markets and Economic Development in an Era of Nation-Building. New York: Cambridge University Press, 2000.
For more on the “Bank War” between President Andrew Jackson and Nicholas Biddle, president of the Second Bank of the United States, see Hammond, Banks and Politics in America, 369–450; Howe, What Hath God Wrought, 375–386; and Sellers, Market Revolution, 321–326, 332–337. The Second Bank of the United States handled the federal governments’ financial transactions. Its federal charter allowed the banknotes it issued to be considered legal tender, exchangeable for gold and silver. (Howe, What Hath God Wrought, 374.)
Hammond, Bray. Banks and Politics in America from the Revolution to the Civil War. Princeton, NJ: Princeton University Press, 1957.
Howe, Daniel Walker. What Hath God Wrought: The Transformation of America, 1815–1848. The Oxford History of the United States. New York: Oxford University Press, 2007.
Sellers, Charles. The Market Revolution: Jacksonian America, 1815–1846. New York: Oxford University Press, 1991.
Howe, What God Hath Wrought, 374.
Howe, Daniel Walker. What Hath God Wrought: The Transformation of America, 1815–1848. The Oxford History of the United States. New York: Oxford University Press, 2007.
Paper money printed by state banks and state-chartered private banks was considered an authorized currency, although not official U.S. currency. Unauthorized paper money was printed by a range of institutions.
Bodenhorn, History of Banking, 17–20, 46–47.
Bodenhorn, Howard. A History of Banking in Antebellum America: Financial Markets and Economic Development in an Era of Nation-Building. New York: Cambridge University Press, 2000.
Golembe, State Banks and the Economic Development of the West, 222–223.
Golembe, Carter H. State Banks and the Economic Development of the West 1830–1844. New York: Arno, 1978.
Stevens, “Bank Enterprisers in a Western Town,” 150–156.
Stevens, Harry R. “Bank Enterprisers in a Western Town, 1815–1822.” Business History Review 29 (June 1955): 139–156.
Rolnick and Weber, “Free Banking, Wildcat Banking, and Shinplasters,” 16–19.
Rolnick, Arthur, and Warren E. Weber. “Free Banking, Wildcat Banking, and Shinplasters.” Federal Reserve Bank of Minneapolis Quarterly Review 6 (Fall 1982): 10–19.
Golembe, State Banks and the Economic Development of the West, 52.
Golembe, Carter H. State Banks and the Economic Development of the West 1830–1844. New York: Arno, 1978.
Golembe, State Banks and the Economic Development of the West, 52–54.
Golembe, Carter H. State Banks and the Economic Development of the West 1830–1844. New York: Arno, 1978.
Golembe, State Banks and the Economic Development of the West, 13–16, 52–54; Coover, “Ohio Banking Institutions, 1803–1866,” 312–313. In some instances, an unauthorized bank might petition the legislature after years of successful operation and receive a charter.
Golembe, Carter H. State Banks and the Economic Development of the West 1830–1844. New York: Arno, 1978.
An 1816 Ohio statute made it a finable offense for an unchartered bank to perform banking services, including the issuing of notes. However, an 1824 statute that prohibited lawsuits against the notes of unauthorized or unincorporated banks seemed to contradict the earlier statute. It was unclear to the public which of the statutes was in force and how unincorporated banks would be judged. In February 1837, Samuel Rounds used the 1816 statute to bring litigation against JS, Sidney Rigdon, and temporary officers of the society for issuing notes from an unincorporated bank. (See Documents, Volume 5, Introduction to Part 5: 5 Oct. 1836–10 Apr. 1837; An Act to Prohibit the Issuing and Circulating of Unauthorized Bank Paper [27 Jan. 1816], Statutes of the State of Ohio, of a General Nature [1841], pp. 136, 137, secs. 1–4, 12; see also Introduction to Rounds qui tam v. JS.)
Statutes of the State of Ohio, of a General Nature, in Force, December 7, 1840; Also, the Statutes of a General Nature, Passed by the General Assembly at Their Thirty-Ninth Session, Commencing December 7, 1840. Columbus, OH: Samuel Medary, 1841.
The name “Kirtland Safety Society Bank” was used to promise payment on an invoice from New York merchant Winthrop Eaton on 11 October 1836, indicating the name and intention of forming the bank had been decided before this time. (Winthrop Eaton, Bill of Goods, 11 Oct. 1836, JS Office Papers, CHL; see also Historical Introduction to Constitution of the Kirtland Safety Society Bank, 2 Nov. 1836.
See Historical Introduction to Kirtland Safety Bank Society Stock Ledger, 18 Oct. 1836–12 June 1837.
See Historical Introduction to Kirtland Safety Society Notes, 4 Jan.–9 Mar. 1837.
The society’s capital stock was a considerably higher amount than that of other community banks in the period, which ranged from $100,000 to $300,000.
For more on the funding problems created by stock subscriptions, see Historical Introduction to Kirtland Safety Society Bank Stock Ledger, 18 Oct. 1836–12 June 1837.
This change in structure led to more corporate terminology and new titles for the society’s officers: Rigdon became the secretary and JS the treasurer.
This term is misleading. Unlike the anti-bank wing of the Democratic Party, which opposed paper currency and the proliferation of banks, the stockholders of the Kirtland Safety Society were not opposed to banking and continued to run their institution as a bank.
The Ohio legislature had granted a considerable number of bank charters in the early 1830s, but it began issuing fewer charters by the 1835–1836 legislative session. In the 1836–1837 session, when Orson Hyde was seeking state authorization for the Kirtland Safety Society, the legislature did not approve any bank charters. Some banks were approved for a charter by virtue of being added to the bill for a state bank, but that bill was not passed until 1845. (Golembe, State Banks and the Economic Development of the West, 52, 251–255.)
Golembe, Carter H. State Banks and the Economic Development of the West 1830–1844. New York: Arno, 1978.
The petition was presented as an amendment to a bill to create a state bank in Ohio, and some aspects of the proposal differed from the society’s articles, possibly to make the legislature more amenable to granting a charter. The most significant change was a decrease in the society’s capital stock from $4 million to $300,000, which, although still higher than most community banks, was within the range of a few. (See Constitution of the Kirtland Safety Society Bank, 2 Nov. 1836.)
Journal of the Senate of the State of Ohio, 366. The legislature did not approve the incorporation of a single bank in its 1836–1837 session.
Journal of the Senate of the State of Ohio, for the Regular Session of the Thirty-Fifth General Assembly. Columbus, OH: The Westbote Co., State Printers, 1837.
“Minutes of a Meeting,” Messenger and Advocate, Mar. 1837, 3:475–477.
Latter Day Saints’ Messenger and Advocate. Kirtland, OH. Oct. 1834–Sept. 1837.
The earliest extant Kirtland Safety Society banknotes are dated 4 January 1837, and it appears that the first loans for the institution are from 4 January, but the discount book and loan papers are dated beginning 7 January 1837. In his journal entry for 6 January, Wilford Woodruff recounted seeing Jacob Bump exchange notes at the Kirtland Safety Society banking office. (Kirtland Safety Society Discounted Notes, ca. Jan. 1837; Woodruff, Journal, 6 Jan. 1837.)
Woodruff, Wilford. Journals, 1833–1898. Wilford Woodruff, Journals and Papers, 1828–1898. CHL. MS 1352.
“Rags! Mere Rags!!,” Ohio Star (Ravenna), 19 Jan. 1837, [3]; Kennedy, Early Days of Mormonism, 162.
Ohio Star. Ravenna. 1830–1854.
Kennedy, James H. Early Days of Mormonism: Palmyra, Kirtland, and Nauvoo. New York: Charles Scribner’s Sons, 1888.
A former employee of Newell’s, James Thompson, claimed that Newell “used to drive about the country and buy up all the Mormon money possible, and the next morning go to the bank and obtain the specie.” At the end of his life, Newell claimed responsibility for driving the church and its members out of Kirtland. (James Thompson, Statement, Naked Truths about Mormonism [Oakland, CA], Apr. 1888, 3; Henry Holcomb, “Personal Experience’s after the Civil War,” in “Personal and Family History 1865–1903,” p. 52, in Henry Holcomb Papers, Western Reserve Historical Society, Cleveland, OH.)
Naked Truths about Mormonism: Also a Journal for Important, Newly Apprehended Truths, and Miscellany. Oakland, CA. Jan. and Apr. 1888.
Holcomb, Henry. Papers, 1864–1919. Western Reserve Historical Society, Cleveland.
“Mormon Currency,” Cleveland Daily Gazette, 20 Jan. 1837, [2], italics in original; “A New Revelation—Morman Money,” Cleveland Daily Gazette, 12 Jan. 1837, [2].
Cleveland Daily Gazette. Cleveland. 1836–1837.
“Anti-Banking Company,” Painesville (OH) Republican, 19 Jan. 1837, [2].
Painesville Republican. Painesville, OH. 1836–1841.
“Kirtland Safety Society,” Cleveland Weekly Advertiser, 2 Feb. 1837, [3].
Cleveland Weekly Advertiser. Cleveland. 1836–1840.
Woodruff wrote in his journal, “We had been threatened by a mob from Panesville to visit us that night & demolish our Bank & take our property but they did not appeare but the wrath of our enemies appears to be kindled against us.” (Woodruff, Journal, 24 Jan. 1837; “Kirtland Safety Society,” Cleveland Weekly Advertiser, 2 Feb. 1837, [3].)
Woodruff, Wilford. Journals, 1833–1898. Wilford Woodruff, Journals and Papers, 1828–1898. CHL. MS 1352.
Cleveland Weekly Advertiser. Cleveland. 1836–1840.
In a July 1837 editorial in the Messenger and Advocate, Warren A. Cowdery reported that “hundreds who were enemies, either came or sent their agents and demanded specie till the officers thought best to refuse payment.” (Warren A. Cowdery, Editorial, Messenger and Advocate, July 1837, 3:536.
Latter Day Saints’ Messenger and Advocate. Kirtland, OH. Oct. 1834–Sept. 1837.
The earliest extant record of a transaction between the Kirtland Safety Society and the Bank of Monroe is a receipt dated 25 January 1837. This receipt was signed by Sidney Rigdon, identifying himself as the president of the Kirtland Safety Society, and Bailey J. Hathaway, a bank director for the Bank of Monroe, who replaced G. B. Harleston as the bank’s cashier. (B. J. Hathaway, Receipt, 25 Jan. 1837, JS Office Papers, CHL; “Bank of Monroe,” Painesville [OH] Republican, 29 Feb. 1837.)
Painesville Republican. Painesville, OH. 1836–1841.
“Bank of Monroe,” Painesville (OH) Telegraph, 24 Feb. 1837, [3]. Bailey J. Hathaway, who was appointed cashier at the same gathering, announced the new positions to the public. S. A. Davis, the editor of the Universalist paper Glad Tidings, and Ohio Christian Telescope, visited Kirtland in February or March 1837 and wrote, “We had not the pleasure of seeing Joseph Smith Jr. Sidney Rigdon, or O. Cowdery, three leading men of this sect, as they had gone to Michigan on business for their Banking Institution.” (“Bank of Monroe,” Painesville [OH] Republican, 29 Feb. 1837; “Kirtland,—Mormonism, &c.,” Messenger and Advocate, Apr. 1837, 3:491.)
Painesville Republican. Painesville, OH. 1836–1841.
Latter Day Saints’ Messenger and Advocate. Kirtland, OH. Oct. 1834–Sept. 1837.
The Bank of Monroe appears to have failed by the end of 1837.
These agreements were with J. W. Briggs and partners Ovid Pinney and Stephen Phillips. (J. W. Briggs, Bond, Kirtland, OH, 8 Mar. 1837, JS Office Papers, CHL; Agreement with Ovid Pinney and Stephen Phillips, 14 Mar. 1837.)
See Historical Introduction to Discourse, 6 Apr. 1837; “Anniversary of the Church of Latter Day Saints,” Messenger and Advocate, Apr. 1837, 3:488; and Woodruff, Journal, 9 Apr. 1837.
Latter Day Saints’ Messenger and Advocate. Kirtland, OH. Oct. 1834–Sept. 1837.
Woodruff, Wilford. Journals, 1833–1898. Wilford Woodruff, Journals and Papers, 1828–1898. CHL. MS 1352.
On 20 May 1837, John Johnson and his daughter Emily Johnson withdrew the money they had paid the society for their shares of stock; Wilford Woodruff, William F. Cahoon, and Sabra Granger followed suit on 22 May. JS, eight members of his family, and nineteen other stockholders sold their stock to Oliver Granger and Jared Carter between 8 and 20 June 1837. (Kirtland Safety Society Bank Stock Ledger, 13–16, 23–24, 45, 47–50, 53–55, 61–64, 87–88, 107–108, 115–120, 149–151, 177–178, 181–182, 187–188, 193–196, 201–202, 207–208, 219, 227, 237–238, 261–262, 265–266, 273–274.)
In a July 1837 editorial, Warren A. Cowdery suggested that JS’s and Sidney Rigdon’s resignations occurred around the same time that they transferred their stock. According to the society’s stock ledger, JS transferred his stock to Oliver Granger and Jared Carter on 8 June, but there is no record of Rigdon transferring his stock. JS’s history recounts that he resigned as an officer of the society before 7 July 1837. It is likely that the officers stepped down soon after they sold their stock, but they may have had to wait until the directors could meet and elect new officers before they could remove themselves from their positions. (“Argument to Argument Where I Find It,” Elders’ Journal, Aug. 1838, 55–60; Warren A. Cowdery, Editorial, Messenger and Advocate, July 1837, 3:535–541; Kirtland Safety Society Bank Stock Ledger, 1–2, 273; JS History, vol. B-1, 764.)
Latter Day Saints’ Messenger and Advocate. Kirtland, OH. Oct. 1834–Sept. 1837.
An editorial in the August 1838 Elders’ Journal mentions that Williams and Parrish were elected to replace JS and Rigdon but does not indicate when this election took place. (“Argument to Argument Where I Find It,” Elders’ Journal, Aug. 1838, 58.)
Historical Introduction to Notice, ca. Late Aug. 1837; Kirtland Safety Society Bank Stock Ledger, 36, 228; Nyholm, Mormon Currency, 45.
Nyholm, Douglas A. Mormon Currency: 1837–1937. By the author, 2010.
“Broken Banks and Fraudulent Institutions,” Daily Herald and Gazette (Cleveland, OH), 4 Dec. 1837, [1].
Daily Herald and Gazette. Cleveland. 1837–1839.
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