Accordingly, in 1837, the far-famed Kirkland bank was put into
operation, without any charter.
This institution, by which so many have been swindled, was formed after
the following manner. Subscribers for stock were allowed to pay the
amount of their subscriptions in town lots, at five or six times their
real value; others paid in personal property at a high valuation; and
some paid the cash. When the notes were first issued, they were current
in the vicinity, and Smith took advantage of their credit to pay off
with them the debts he and the brethren had contracted in the
neighbourhood for land and other purchases. The eastern creditors,
however, refused to take their notes. This led to the expedient of
exchanging them for the notes of other banks.
Accordingly, the elders were sent off the country to barter Kirkland
money, which they did with great zeal, and continued the operation until
the notes were not worth sixpence to the dollar. As might have been
expected, this institution exploded after a few months, involving Smith
and his brethren in inextricable difficulties. The consequence was that
he and most of the members of the church set off. In the spring of 1838,
for Missouri, pursued by their creditors, but to no effect.
We must now go back for a short period to state another circumstance.
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