Warren Parrish, who had been an officer in the bank and had apostatized from the Church, made this statement: "I have listened to him [i.e. Smith] with feelings of no ordinary kind, when he declared that the AUDIBLE VOICE OF GOD, INSTRUCTED HIM TO ESTABLISH A BANKING-ANTI BANKING INSTITUTION, who like Aaron's rod SHALL 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." (Painesville Republican, February 22, 1838, as quoted in Conflict at Kirtland, page 297)

Wilford Woodruff, who remained true to the Church and became the fourth President, confirmed the fact that Joseph Smith claimed to have a revelation concerning the bank. Under the date of January 6, 1837, he recorded the following in his journal: "I also herd [sic] President Joseph Smith, jr., declare in the presence of F. Williams, D. Whitmer, S. Smith, W. Parrish, and others in the Deposit office that HE HAD RECEIVED THAT MORNING THE WORD OF THE LORD UPON THE SUBJECT OF THE KIRTLAND SAFETY SOCIETY. He was alone in a room by himself and he had not only [heard] the voice of the Spirit upon the Subject but even an AUDIBLE VOICE. He did not tell us at that time what the Lord said upon the subject but remarked that if we would give heed to the commandments the Lord had given this morning all would be well." ("Wilford Woodruff's Journal," January 6, 1837, as quoted in Conflict at Kirtland, page 296)

"Construction of the temple had temporarily boosted the economy of Kirtland, but after the dedication the economy declined as poor converts arrived in ever increasing numbers. The old settlers attempted to keep them out of Kirtland by economic pressures, but the Mormon population increased twentyfold while the landholdings only quadrupled. In November 1836 Joseph and other church leaders drew up articles for a bank to provide capital for investments. It was a desperate gamble. Oliver Cowdery went to Philadelphia for plates to print bank notes, and Orson Hyde went to the legislature in Columbus with a petition for a bank license. It was refused. Oliver returned with plates for the Kirtland Safety Society Bank, but Orson Hyde came back without a charter. The plates were so expensive that they printed some specie anyway, writing in "Anti" before the word "Bank" and "ing" after it. The notes read, "Kirtland Safety Society Anti-Banking Company," and the paper passed as legal tender from a joint-stock company. At first the money circulated wildly. When merchants and businessmen who were more sophisticated than the Mormons began to redeem their notes, Joseph could see that a run would ruin the bank. After one month he and Sidney Rigdon resigned as officers but the bank failed. This affected Joseph's status.

People who were convinced that Joseph had intended a swindle at the outset attacked him verbally and threatened him physically. This disruption forced Joseph to leave the city frequently....

In April 1837 Joseph went into hiding without seeing Emma before he left. (Mormon Enigma, pp. 62)

"If the bank needed a final blow to shatter what little prestige it still held among the faithful, it received it when Warren Parrish resigned as cashier, left the church, and began openly to describe the banking methods of the prophet. Parrish was later accused of absconding with $25,000, but if he took the sum it must have been in WORTHLESS BANK NOTES, since that amount of specie in the vaults would have saved the bank, at least during Joseph's term as cashier." (No Man Knows My History, page 198)

"The toppling of the Kirtland bank loosed a hornets' nest. Creditors swarmed in upon Joseph armed with threats and warrants. He was terribly in debt. There is no way of knowing exactly how much he and his leading elders had borrowed, since the loyal Mormons left no itemized account of their own claims. But the local non-Mormon creditors whom he could not repay brought a series of suits against the prophet which the Geauga county court duly recorded. These records tell a story of trouble that would have demolished the prestige and broken the spirit of a lesser man.

"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, and his followers managed heroically to raise the $38,428 required for bail. Of the thirteen suits only six were settled out of court-about $12,000 out of the $25,000. In the other seven the creditors either were awarded damages or won them by default.

"Joseph had many additional debts that never resulted in court action. Some years later he compiled a list of still outstanding Kirtland loans, which amounted to more than $33,000. If one adds to these the two great loans of $30,000 and $60,000 borrowed in New York and Buffalo in 1836, it would seem that the Mormon leaders owed to non-Mormon individuals and firms well over $150,000." (No Man Knows My History, pp. 199-202)

"It was natural that blame for the entire situation should be charged against the Prophet. They had gathered to Kirtland at his command; the idea of purchasing housing lots in the great subdivision scheme had his full support; he had inferred that the bank would not only succeed, but would one day be the most powerful institution of its kind....the Church populace was genuinely disillusioned when the bank failed. It was difficult for them to comprehend that a man who claimed to have divine revelation in religious matters could fail so miserably in economic affairs.... No amount of shifting of blame could obscure the fact that a prophet had failed in a grand project.... As the Sheriff appeared ever more regularly with summons and as the fortunes and anticipations of one after another of the leaders faced the humiliating prospect of publicly acknowledged incompetence and bankruptcy, the discipline and sense of responsibility, which are the heart of all organizations, broke completely and plunged Mormondom into ecclesiastical anarchy." ("The Growth of the Mormon Church in Kirtland, Ohio," typed copy, pp. 233, 234, 237 and 238, as it appears in Mormonism - Shadow or Reality? pp. 533)

"The State legislature refused the Kirtland Safety Society its charter upon which the name of the bank was changed to Kirtland Anti-Banking Society....Joseph and Sidney Rigdon were tried in court for violating the law, were found guilty and fined $1,000. They appealed on the grounds that the institution was an association and not a bank; the plea was never ruled upon as the bank suspended payments and closed its doors. Other lawsuits followed....

"During the summer of 1837, Joseph spent much of his time away from Kirtland to avoid these lawsuits.... Apostles Luke S. Johnson, Lyman E. Johnson, and John F. Boynton were rejected and disfellowshipped.. "The blame of the bank failure fell heavily on Joseph. He had issued a formal invitation to his followers to take stock in the venture and the institution had been organized outside the law. Heber C. Kimball later was to comment that at this moment, 'there were not twenty persons on earth that would declare that Joseph Smith was a prophet of God.' Six of the apostles came out in open rebellion....Joseph first established the bank by revelation and then had to later admit that because of poor management and other internal and external conditions the project was a failure." ("Joseph Smith As An Administrator," M.A. thesis, Brigham Young University, May 1969, pp. 80, 81, 82, 85, 86 and 88, as it appears in Mormonism - Shadow or Reality? pp. 533)

• When Smith and friends applied for a state bank charter, they were turned down. Smith had already had bank note printing plates made which read "Kirtland Safety Society." After their charter was rejected, Smith ordered the notes to be issued anyway, but they were stamped to read "Kirtland Safety Society Anti-Banking Co.", so as to skirt the lack of bank charter.
• After the bank and the Kirtland community failed, several former bank executives (all Mormons) testified that Smith and Rigdon had placed a chest filled with junk in their bank's vault, with a thin layer of silver coins on top, to serve as the bank's "capital."
• Half of the original twelve apostles, and more than half of the total church membership, left the church because of the Kirtland failure.
• In the midst of the troubles, Smith sought to escape them by going on a five-week "mission trip" to Canada. Upon his return, he found that half of his church members had "rallied around a young girl who claimed to be a seeress by virtue of a black stone in which she could read the future. David Whitmer, Martin Harris, and Oliver Cowdery, whose faith in seer stones had not diminished when Joseph stopped using them, pledged her their loyalty, and F.G. Williams, Joseph's First Counselor, became her scribe." (No Man Knows My History, p. 205.) (This tells us a lot about the mental states of the "witnesses" to the alleged golden plates.)
• Upon being charged with bank fraud, Smith and Rigdon were forced to flee Kirtland on horseback at night to escape mobs who wanted to avenge their financial losses.

"One of Joe Smith's weakest points was his jealousy of other men. He could not bear to hear other men spoken of. If there was any praise it must be of him; all adoration and worship must be for him. He would destroy his best friend rather than see him become popular in the eyes of the church or the people at large. His vanity knew no bounds. He was unscrupulous; no man's life was safe if he was disposed to hate him. He sat the laws of God and men at defiance."

"…we invite the brethren from abroad, to call on us, and take stock in our Safety Society; and we would remind them also of the sayings of Isaiah…'Surely the isles shall wait for me, and the ships of Tarshish first, to bring thy sons from far, their silver and their gold (not their bank notes) with them, unto the name of the Lord thy God.'" (The parenthetical expression is part of the original text, reprinted in History of the Church, Vol. 2, p. 473)

"The effect of those boxes was like magic. 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." (Interview by W. Wyl. See Mormon Portraits, p. 36; also Oliver Olney: Absurdities of Mormonism Portrayed, p. 4; the letter of Cyrus Smalling in E. G. Lee, The Mormons, or Knavery Exposed, p. 14; and Fawn Brodie, No Man Knows My History, pp. 194-8).

"I have been astonished to hear him declare that we had $60,000 in specie in our vaults and $600,000 at our command, when we had not to exceed $6,000 and could not command any more; also that we had but about ten thousand dollars of our bills in circulation when he, as cashier of that institution, knew that there was at least $150,000." (Letter to Zion's Watchman, published March 24, 1838. Cyrus Smalling also wrote that Joseph had collected only $6,000 in specie. See E. G. Lee, The Mormons, or Knavery Exposed, p. 14)

"It was marvelous to see with what tenacity they held to their faith in the prophet, when they knew they had been robbed, abused and insulted." (Pioneer and Personal Reminiscences, p. 45)

Who can offer the best rebuttal to this apologist spin

http://www.deseretnews.com/article/70...

I do not know enough about this issue,but please offer your thoughts on this latest spin?

I just wanted to call everybody's attention to the transcript that has been posted at FAIR of McKay White's excellent presentation on the Kirtland Bank (aka the Kirtland Safety Society), which has often been used by critics to attempt to paint Joseph Smith as corrupt . . .