“Money seems to be very scarce, though paper ought to be plentiful.” — Niles’ Register1
The Panic of 1837 was a severe financial crisis in the United States that affected not just the broader economy but also smaller communities like Kirtland, Ohio. Triggered by excessive speculative investments and a collapse of the banking system, this panic marked a significant downturn in the U.S. economy. Reckless lending practices had left banks, both in England and the United States, vulnerable. By the mid-1830s, banks began calling in debts, and many ceased issuing loans, leading to widespread economic turmoil and fear of total financial collapse.2
In Kirtland, the Kirtland Safety Society was among those impacted. Founded during a period of economic optimism, the society could not withstand the sudden downturn. Joseph Smith faced personal and institutional challenges as the community struggled to manage the repercussions of the nationwide financial strain. The crisis led to increased unemployment, a sharp drop in land values, and a general scarcity of money, severely affecting daily life and the operations of the Church.2
Joseph Smith was forced to issue payments in Kirtland Safety Society banknotes, which rapidly declined in value and acceptance. This made the situation worse, leading to a decrease in manpower on essential projects and difficulty in meeting Church obligations. Ultimately, Joseph had to mortgage significant assets, including the Kirtland temple, to meet financial obligations.3
