“And further, we invite the brethren from abroad, to call on us, and take stock in our Safety Society.’” — Joseph Smith1
In January 1837, the Kirtland Safety Society began operations amid economic hardship, with a mission to stimulate Kirtland's local economy and provide financial stability to the community of Saints. Conceived as a bank, it issued loans in the form of banknotes backed by a limited reserve of silver and gold and sold shares to church members and local residents to build up this reserve.2 Joseph Smith served as the cashier, and Sidney Rigdon as the president, both investing personal funds into the venture.2
The Safety Society aimed to operate legally and sought a charter from the state legislature, but it was ultimately denied, forcing it to function without formal bank status. Despite this setback, it began issuing banknotes that were used for local transactions and loans, primarily backed by land collateral.3 Here, Grandison Newell, a vocal opponent of the Church, saw an opportunity to undermine the institution by hoarding its notes and demanding redemption in hard currency, aiming to deplete its reserves.3
The Safety Society was also in violation of Ohio Banking Act of 1816, which restricted newly established institutions from issuing banknotes. As the national economic crisis deepened, the Safety Society's banknotes began to lose value, leading to heightened tensions within the community. Some Church members, including prominent dissenters, accused Joseph Smith and Sidney Rigdon of mismanagement, which led to significant dissent and division within the Church.4
