Panic of 1837 · US History

The Specie Circular, issued by the Jackson administration in 1836, required that public lands be purchased using which of the following?

  1. Bank notes issued by state-chartered banks
  2. Gold or silver coinage (specie)
  3. Federal treasury bonds
  4. Agricultural commodities like cotton or tobacco
Show answer and explanation

Correct answer: Gold or silver coinage (specie)

The Specie Circular was an executive order aimed at curbing land speculation and the proliferation of paper money. It mandated that only 'hard money' (gold or silver) could be used to buy government land, which significantly reduced the liquidity of many western banks.

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