What was the Specie Circular and how did it relate to the so called Bank War what was the ultimate outcome?

The Bank War was a bitter and personal dispute between Jackson and his enemies. Jackson succeeded in his determination to destroy the Second Bank of the United States but deposits of government money into the “Pet Banks” resulted in the Specie Circular which dried up credit and ultimately led to the Panic of 1837.

What is the Specie Circular and what problems does it cause?

The Specie Circular was issued by President Andrew Jackson in 1836. It required payment for public lands be in gold and silver specie or certain sound money. Thus, much paper money was instantly devalued. This was due to the State Banks passing out bad loans they could not pay off.

Why was the Specie Circular bad?

The “Specie Circular” was a decree that only gold and silver could be accepted in purchasing public lands[96]. Many in Jackson’s Cabinet objected because they saw a danger in it. The danger was that Congress may have seen it as a further abuse of executive power by Jackson and may have tried to supersede it[97].

What was the significance of the Panic of 1837?

The panic of 1837 was a financial crisis in the United States that triggered a multi-year economic depression. Fiscal and monetary policies in the United States and Great Britain, the global movements of gold and silver, a collapsing land bubble, and falling cotton prices were all to blame.

How did Specie Circular affect the economy?

The Specie Circular, by seriously curtailing the use of paper money, was highly deflationary and at least in part produced the ensuing credit crunch and the economic crisis called the Panic of 1837.

What was the result of the Specie Circular?

In July 1836, President Andrew Jackson issued the Specie Circular. Under this act, the government would only accept gold or silver in payment for federal land. This act prevented working-class Americans from purchasing federal land in the West, including in Ohio, due to the lack of gold and silver.

Why was the Specie Circular important?

What were the effects of the Specie Circular?

What was the cause and effect of the Panic of 1873?

This resulted in a five year depression. The panic of 1873 was a result of over-expansion in the industry and the railroads and a drop in European demand for American farm products and a drop off of European investment in the US.

What were the causes and results of the Panic of 1837?

The Panic was followed by a five-year depression, with the failure of banks and record high unemployment levels. Causes of the Panic of 1837 include the economic policies of President Andrew Jackson who ordered the Specie Circular, which required the payments for government lands to be paid in gold or silver.

What was the purpose of Specie Circular?

Specie Circular, (July 11, 1836), in U.S. history, an executive order issued by President Andrew Jackson requiring that payment for the purchase of public lands be made exclusively in gold or silver.

How did Andrew Jackson feel about Specie Circular?

The devaluation of paper currency only increased with Jackson’s proclamation. This sent inflation and prices upwards. Many at the time (and historians subsequently) blamed the Specie Circular for the rise in prices and the following Panic of 1837. Jackson believed that it had to be given enough time to work.

What did the Specie Circular of 1836 do?

The Specie Circular of 1836 mandated that western lands could be purchased only with gold and silver coin. The circular was an executive order issued by Andrew Jackson and favored by Senator Thomas Hart Benton of Missouri and other hard-money advocates.

Who was the author of the Specie Circular?

Andrew Jackson decided to issue an Executive Order requiring that payment for the purchase of public lands be made exclusively in gold or silver – the Specie Circular. Senator Thomas Hart Benton was the author of the Specie Circular and Jackson legalized the idea in an executive order.

Why was the Specie Circular implemented in Ohio?

Under this act, the government would only accept gold or silver in payment for federal land. This act prevented working-class Americans from purchasing federal land in the West, including in Ohio, due to the lack of gold and silver. The principal reason for Jackson’s implementation of the Specie Circular was high inflation.

How did the Specie Circular lead to the Panic of 1837?

The banks also began printing exorbitant amounts of currency. This action led to high inflation. The government did not want to accept currency that was quickly declining in value for federal land. The Specie Circular was partly responsible for the Panic of 1837.