ABH Site Index
Historic SitesU.S. History TimelineT-Shirts/SouvenirsMoreInfo
Timeline - The 1830s
Imfeasible to conquer, yet with the intrepid spirit of the mountain men, miners, and also pioneers, they would certainly begin an earnest attempt as the nation relocated, in its initially actual phase, from east to west.
You are watching: Why was the specie circular enacted?
Picture above: Independence Rock on the Oregon Trail. First stated by Parker in 1835, and carries an inscription on therock with the names of early on trappers and also explorers. Photo William H. Jackboy, circa 1870. Right: Painting by Percy Moran, 1912, reflects the intensity of the fight of the Alamo. Photograph courtesy Library of Congress.
Sponsor this page for $75 per year. Your banner or text ad have the right to fill the area over.Click right here to Sponsor the page and also just how to reserve your ad.
1836 - DetailJuly 11, 1836 - The Specie Act is issued by executive order of President Anattracted Jackkid. This act would result in the failure of the economy of land also speculation and also the Panic of 1837.President Anattracted Jackson had certain ideas about just how to manage the economy that were controversial, while keeping good as a whole goals, i.e. to get rid of the nationwide debt. He defunded the Second Bank of the USA in 1832 and also withdrew ten million dollars of federal government money from it and deposited the money in state financial institutions and personal establishments. Problem was, those organizations started loaning money, and also basically printing money, in order to loan speculators in public land also purchases the money needed to corner the settler land industry. Due to the fact that many kind of personal financial institutions did not have tough money to earlier their paper, also though that had actually been the requirement of specie-backed state institutions, this caused rampant speculation on public land acquired after Indian removal.Between 1834 and 1836, 5 times the amount of public lands had actually been sold than in prior years. This caused high inflation and also prevented many kind of actual inhabitants from buying land at reasonable prices. Speculation was so huge that by January 1, 1836, financial institution deposits had increased to $251,000,000 ($61m in 1930), yet loans and discounts currently far outpaced that capital at $457,000,000 ($200m in 1930) via notes of $140,000,000 ($61m in 1930) more. Jackson had actually, however, been successful at one huge goal, the nationwide debt had actually been got rid of as of January 1, 1835. This provided him extra credibility within some circles to enact even more redevelops. So while Jackson"s objectives were seemingly good, i.e. to curb inflation and speculation, eliminate that nationwide debt, plus guard versus the decreasing worth of paper money, the issuance of the Specie Act or Specie Circular by Executive Order on July 11, 1836, actually made the problem worse. The act forced payment in gold and silver for western public land also purchases of over three hundred and twenty acres, which many bad settlers did not have, and it caused a run on those previous assets, that precious gold and also silver, of which some banks inevitably did not have the quantities essential, and rippled right into a additionally dreview in paper currency, thus causing in component, the Panic that would certainly ensue in 1837
.Note: The initially paper currency backed by the U.S. Treasury did not exist until 1861. Yes, tright here was Revolutionary War money, known as Continentals, but that ceased to have any kind of worth by 1781. Today"s money, dollar bills in $1-$100 dollar denominations, is recognized as Federal Reserve notes, published by the Bureau of Engraving and also Printing, a UNITED STATE Treasury department. USA coins were first produced in 1792.
Reactivity to the Executive OrderWhen communicated to the Senate on December 14, 1836, members in opplace, including Daniel Webster, Senator from Massachusetts and previous head of the Senate Finance Committee, began to formulate resolutions for its elimination through the start of a long speech around his disagreement through the Executive Order. Despite this speech, the Specie Circular would not be repealed by a joint resolution of Congress until May 21, 1838.Webster on December 21, 1936 in Senate conflict - "Mr. PRESIDENT : The power of getting rid of of this essential subject is in the hands of gentlemales, both below and also somewhere else, who are not likely to be affected by any type of opinions of mine. I have actually no motive, therefore, for addressing the Senate, however to discharge a public duty, and to fulfil the expectations of those that look to me for opplace, whether availing or unavailing, to whatever I think to be illegal or injurious to the public interests. In both these respects, the Treasury order of the llth of July appears to me objectionable. I think it not warranted by regulation, and also I think it likewise nearly prejudicial. I think it has added not a little to the pecuniary challenges under which the totality country has been, and also still is, laboring; and also that its direct effect on one certain part of the country is still even more decidedly and also sevecount unfavorable..."Most members of Jackson"s very own cabinet did not agree via the Executive Order.
See more: What Does The Apron Symbolize In Their Eyes Were Watching God
Text of Specie ActCircular From the Treasury that Gold and Silver Only Be Received in Payment for the Public LandsTreasury Department, July 11, 1836In consequence of complaints which have actually been made of frauds speculations, and monopolies, in the purchase of the public lands, and also the assist which is sassist to be given to result these objects by too much bank credits, and also dangerous if not partial infrastructure, through bank drafts and also financial institution deposits, and the basic evil influence most likely, to outcome to the public interests, and also specifically the safety of the good amount of money in the Treasury, and also the sound condition of the money of the country, from the further exreadjust of the nationwide doprimary in this manner, and chiefly for bank credits and also paper money, the President of the United States has actually offered directions, and also you are hereby instructed, after the 15th day of August next, to receive payment of the public lands nopoint other than what is directed by the existing regulations, viz.: gold and also silver, and also in the correct instances, Virginia land also scrip; gave that, till the 1fifth of December following, the same indulgences heretofore extfinished regarding the type of money got may be ongoing for any type of amount of land not exceeding 320 acres to each purchaser that is an actual settler, or bonafide resident in the State wright here the sales are made.In order to insure the faithful execution of these instructions, all receiver are strictly prohibited from accepting for land marketed, and also draft, certificate, or other evidence of money or deposit, though for specie, unless signed by the Treasurer of the USA, in conformity to the act of April 24, 1820. And each of those officers is forced to annex to his monthly returns to this department, the amount of gold and also of silver respectively, and also the bill got under the foregoing exception; and also each deposit financial institution is required to annex to eexceptionally certificate offered upon a deposit of money, the proparts of it actually phelp in gold, in silver, and also in bank-notes. All former instructions on this subjects, other than as now modified, will certainly be taken into consideration as staying in complete pressure.The major objects of the President, in adopting this meacertain, being to repush alleged frauds, and to withorganize any kind of countenance or framework in the power of the government from the monopoly of the public lands in the hands of speculators and capitalists, to the injury of the actual inhabitants in the brand-new States, and of emigrants in search of brand-new homes, and to discourage the ruinous extension of bank concerns and also bank credits, whereby those outcomes are primarily intended to be advocated, your utthe majority of vigilance is forced, and relied on, to lug this order right into complete execution.Levi Woodbury, Secretary of the TreasuryImage above: Cartoon drawing titled "Who"ll Have the Specie," which spoke of issue of tough money in the United States and also England, 1837, Henry R. Robinchild. Courtesy Library of Congress. Image below: Lithograph of the Panic of 1837, Specie Clegislations, 1838/9, Henry Dacre and also Henry R. Robinboy. Courtesy Library of Congress. Info Source: Infobase Learning; Ohio History Central; "Andrew Jackkid, Banks, the Panic of 1837," Lehrmaninstitute.org; Wikipedia Commons; Library of Congress; College of California; Britannica.com; Federal Reserve Bank.