In 1821 Mexico finally gained its independence from Spain. However,
independence did not necessarily mean prosper for Mexico. In the years
to follow Mexico experienced a number of internal political takeovers
and wars, including the Mexican-American War and the Mexican Civil war.
Due to these events the economy was suffering. Mexico had accumulated
many debts from several nations, including Spain, England and France.
However, after Benito Juarez was elected president for a second term in
1861, the Mexican Congress suspended foreign debt repayment for two
years in hopes of becoming more financially stable.
The war begins