Jacksonian Democracy and Populism · US History

The 'Specie Circular' (1836) was an executive order that required:

  1. All federal taxes to be paid in gold or silver
  2. The purchase of public lands to be made with 'hard money' (gold or silver)
  3. The Second Bank of the United States to resume specie payments immediately
  4. State 'pet banks' to stop issuing paper banknotes
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Correct answer: The purchase of public lands to be made with 'hard money' (gold or silver)

Jackson issued the order to curb land speculation and the proliferation of 'soft' paper money from state banks. This move contributed to the Panic of 1837 by draining specie from the banks and causing a sudden contraction of credit.

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