The Specie Circular was a United States presidential executive order issued by President Andrew Jackson July 11, 1836 pursuant to the Coinage Act. It required payment for government land to be in gold and silver. The goal was to curb excessive land speculation and to quash the enormous growth of paper money in circulation. He was trying to control inflation.
People in essence had to use their notes (paper money) to buy specie (gold and silver) at a premium from the banks, and in turn use the gold or silver to buy land. When land sales dropped off, it meant state governments, especially in the West, lost income. At the same time, higher interest rates in England were beginning to lower the price of cotton. These circumstances would eventually help precipitate the Panic of 1837. The Specie Circular, by seriously curtailing the use of paper money, was highly deflationary.
On May 21, 1838, a joint resolution of Congress repealed the Specie Circular.