Page(s) 386-388 10.4. Explain the causes of the economic depression the late 1830s and the emergence of the Whig party. In 1836, Andrew Jackson issued the Specie Circular, which required that all purchases of federal government land by speculators be made in gold and silver, not paper money. What was the impact of the Specie Circular on the U.S. economy? Correct Answer(s) Depositors hurried to local banks to withdraw their money. Banks shifted much of their limited supply of gold and silver to their western branches. Banks reduced lending, causing the economy to slow dramatically. Investment in eastern manufacturing increased. Incorrect Answer(s)