[8] During his administration, the state legislature approved old age pension and unemployment compensation laws.

[9] In December 1936, Smith and other Marble Bank officials were charged with fraud for failing to inform account holders and authorities about an embezzlement.

Smith let him leave quietly, kept the theft secret, and charged the loss against the bank's surplus.

The bookkeeper was convicted and jailed, and the bank Treasurer received a suspended sentence and a $400 fine.

[citation needed] In 1936, Smith was injured in a car accident and his health began to decline.