Civil War and Postbellum
Smith enlisted early in the Civil War, but was disabled in the Battle of Shiloh. He tried to return to duty that summer, but the wound would not heal properly, so he became a member of the Invalid Corps, serving out the remainder of the Civil War as a mustering officer/recruiter in Louisville for three years. His service record states that he was good at recruiting "colored" troops.
While working in Louisville, he met and later married Emma L. Havrety in November 1864.
In 1869, Smith's father-in-law, Daniel Havrety claimed bankruptcy. The lawyers for the bankruptcy court noticed a tremendous enlargement of Jacob Smith's assets while in Louisville, from $4,000 in 1862 to $40,000 in 1865. Smith admitted that he was involved in a brokerage scheme using bounty money for army recruits to finance a side business and speculations in whisky, gold, and diamonds. Smith said he receipted for a package sent via Express from New Orleans to Cleveland. The package came from his father-in-law and was addressed to Smith's mother-in-law. Smith later learned the package contained $13,000.
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