The early banks of Nebraska were created by the territorial legislature. Requirements for opening and operating a bank were liberal. Banks were given the authority to issue bank notes as money. These "wildcat notes" circulated freely, riding the crest of the boom years of land speculation and investment in proposed town sites, railroads, and industries. The value of these notes fluctuated, counterfeiting was common, and businessmen often refused to accept them. By 1857 the financial panic in the East had spread to the territory. The boom period ended and wildcat banks failed, making the notes worthless and destroying public confidence in banks.