In pursuance of this action the Saints began to move from Clay County as soon as circumstances would permit, and located on Shoal Creek, in an uninhabited section in the north part of Ray County. The property of the few settlers in that part, they purchased, and commenced to build their homes. By December, 1836, a goodly number had taken up their residence there and a petition was sent to the governor asking for a county organization. This petition was granted about the middle of that month. This organization, and the prospect of a peaceful habitation, gave impetus to the growth of the "Mormon" colonies, and the County of Caldwell, as it was called, "grew like Jonah's gourd."[2] The Kirtland Safety Society Affairs in Kirtland had been progressing smoothly for some time, and many blessings were bestowed upon the people. Such a condition, however, was not to last. On the 2nd of November, 1836, articles of agreement were prepared for the organization of the "Kirtland Safety Society Bank." The State of Ohio, through prejudice, refused to grant a charter, so the matter rested until January, 1837, when a society was organized within the provisions of the law. Stock was subscribed for and the business commenced. During this year (1837) speculation was at high ebb throughout the entire nation. The Latter-day Saints in Kirtland partook of that spirit; several business ventures had failed to come up to expectations, and many of the members of the Church were financially involved. The authorities of the Church, with others of the leading brethren who had subscribed for stock in the Kirtland Safety Society, pledged themselves to be responsible for the redemption of all the notes of the institution, in proportion to the amount of stock subscribed. Since they had no charter, other banking institutions refused their notes. The cashier of this society, at one time the Prophet's clerk and a faithful elder in the Church, was found guilty of immoral conduct. He was forgiven on a show of repentance and confession, and retained his standing in the Church; but he never regained the spirit and shortly after became disaffected. He misappropriated the funds of the society to the extent of over twenty-five thousand dollars, which placed the institution in a precarious condition. Seeing how matters were being conducted, the Prophet gave a warning which was not heeded; therefore, early in the summer of 1837, he withdrew from the concern, resigned his office and disposed of all his interests therein, stating that he was satisfied after five months' experience, "that no institution of the kind, established upon just and righteous principles for a blessing not only to the Church, but to the whole nation, would be suffered to continue its operations in such an age of darkness, speculation and wickedness." The Financial Panic of 1837