Question

What is one reason that Andrew Jackson issued the Specie Circular in July 1836, requiring payment in gold or silver for all public lands? because the Congress had forced him to to strengthen the government's currency because paper money was hard to obtain

Answer 1

One of the Important reasons for the 1836 Specie Circular was the uncontrolled land speculation in the West. Real estate speculation was funded by increased availability of credit from the Second Bank of the United States and new, reckless frontier banks. State banks were chartered for the express purpose of extending credit to speculators. The number of banks more than doubled between 1812 and 1819. The Banks were unregulated and began to issue massive amounts of bank notes. The bank notes were not backed by gold and silver. This led to the Panic of 1819.

Answer 2

The Specie Circular was issued by the President Andrew Jackson. As per the act government decided to only accept gold or silver as payment for federal land. This act affected the working class people as they could not purchase lands due to lack of gold and silver. This act was issued due to inflation.

The inflation was caused by the decisions of Andrew Jackson as he withdrew more than ten million dollars from the Second Bank of America and deposited it in private financial institutions and state banks. These banks began loaning money to farmers, industries and began printing huge amount of currency, it caused depreciation of the currency. The depreciation led to inflation and the government denied accepting the devaluing currency for federal lands. The devaluation led to high inflation and to bring the inflation under control Jackson issued Specie Circular.