Final answer:
After the bank closed, the government required payment in gold or silver coins from those wishing to buy public land. This was due to the suspension of specie payments by state banks and the need to bolster the nation's gold reserves during economic upheavals throughout the 19th century.
Step-by-step explanation:
After the bank closed, the type of payment that the government required from people who wanted to buy public land was gold or silver coins.
Throughout the 19th century, U.S. banking and currency practices underwent significant changes, especially during periods of conflict like the War of 1812. State banks suspended specie payments during the war, leading to an over-issuance of paper banknotes with insufficient gold or silver backing, which resulted in the temporary suspension of convertibility of paper currency into specie.
The subsequent economic instability and the speculative bubble fostered the necessity for a more regulated currency system. This was underscored by the Lincoln administration issuing greenbacks during the Civil War, signaling a departure from only issuing notes backed by species due to depleted gold reserves. However, when it came to the purchase of public lands, the federal government required payment in gold or silver to protect its precious metal reserves and assert the value of its currency.