The Specie Circular is issued by Treasury Secretary Levi Woodbury. Jackson and his administration felt it would check the speculation in land purchases that was rampant because of the "war" against the Second Bank of the United States
Banks in New York City see a tremendous outflow (some estimates range as high as $700,000) of hard currency (gold and silver) as a result of the Specie Circular.
New York City banks suspend hard currency payments because of depleted reserves. The "Panic of 1837" that occurred today results in a 6-year depression