Arkansas's economy was in poor shape in the period leading up to statehood and was not in a position to support state government functions. Tax rates were very low in all Southern states controlled by planters, and Arkansas was no exception. Most planters did not carry a lot of cash and were usually indebted to cotton factories most months of the year. The little extra cash planters had was usually invested in slaves or land, leaving most plantations in the margins for long periods of time. The northwest parts of Arkansas that did not rely on cotton production relied on a cash scarce economy that consisted of bartering for necessities. Although farmers produced enough goods to sell, they were locked into the local market and were unable to transport their goods to other markets, keeping the region cash-poor. The Federal government gave land to the state, to be sold for seed money to start a treasury for Arkansas. These funds were quickly wasted, and since frontier Arkansas did not offer many services to its citizens, revenues from taxes and fees were incapable of supporting the state government. President Jackson's "Specie Circular" also hurt the state economy by forcing land purchases to be made with gold and silver rather than paper money. In addition to affecting private citizens who were land speculating, the policy stymied state revenues since Arkansas had been relying on the tax revenue from each land purchase as its primary source of income.