Panic of 1837 · US History

The Specie Circular was most unpopular among which of the following groups?

  1. Wealthy eastern merchants who already held large amounts of gold
  2. Hard-money advocates who distrusted paper currency
  3. Federal tax collectors who preferred to handle paper bills
  4. Western land speculators and settlers who relied on bank credit
Show answer and explanation

Correct answer: Western land speculators and settlers who relied on bank credit

Westerners typically had very little gold or silver and relied on bank notes for transactions. By requiring specie for land sales, the government made it nearly impossible for many settlers and speculators to continue buying land, causing land values to crash.

Difficulty: Medium Question 11 of 20

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