Farmers lose income. 1836 Stock and commodity prices fall. Merchants and investors lose income. 1836 Land and slave sales fall as Specie Circular requires hard money payment for land instead of paper notes. The downturns in the American economy shook British investment confidence.
British banks recall loans.
US trade with Europe fell. The above 2 factors resulted in flight of hard money to England. This made the shortage of hard money in the US more acute. The administration of Martin van Buren reacted to the worsening economic situation. This meant that people wanting to exchange paper for coin were unable to do so.