Oliver Cowdery returns to Kirtland with the printing plates he has purchased in Philadelphia. At the same time, Orson Hyde returns from Columbus, Ohio, with the disappointing news that the bank charter has been rejected by the state legislature. Joseph records that the charter was denied "because we were 'Mormons.'" However, at this time the antibanking wing of the Democratic Party has just won control of the state legislature, and those in power are turning down all bank applications.
Because so little hard cash is necessary to buy notes with such a high face value (for instance $52.50 would buy notes with a face value of $10,000), many begin to foolishly believe that they have made their fortune. City lots jump from $150 to $500-$1000. In the ensuing weeks and months, the spirit of speculation spreads through Kirtland.
[Source: Conkling, Christopher J., Joseph Smith Chronology]