Smith took over a library that, like all of Seattle, had been seriously impacted by the Panic of 1893: by 1895 its annual budget was only half of what it had been that first year.
В связи с «Паникой 1893 года» бюджет библиотеки был сильно урезан, в 1895 году Смит даже начал брать с читателей по 10 центов за книгу, но это нововведение не прижилось.