BLOCK II

The economic situation (copy right)

After the Reforma war the economy of the country got worst. The mining and the agriculture were abandoned and the internal and external commerce were down.The economic situation.
Taxes are not getting enough, and therefore the government had no money to invest and improve all ports and roads. Besides the army had so many wars that had to have more men and therefore to keep costs were huge. The only thing the government could do was resort to borrowing and increasing external debt.

In the absence of money, President Benito Juarez decided to no longer pay the debt to the countries of England, France and Spain, although it promised to pay as soon as possible. In response these countries blockaded the ports of the Gulf of Mexico, to demand the liquidation of the debt.
President Juarez was able to negotiate with England and Spain promising to pay them as possible, but France did not accept, and the beginning of military intervention.
The Republican government and the Second Empire.
The block ports Gulf of Mexico put the government in a difficult position, Juarez business again with England and Spain and achievement withdraw their fleets from the port of Veracruz. But France did not accept and landing troops, which went to Mexico City, conservatives living in Mexico wanted a monarchy headed by a member of European royalty, so they joined the French troops.
Trying to stop the advance troops in Puebla the army led by Ignacio Zaragoza won the battle on May 5, 1862, but the following year lost the battle, since France had reinforced his army with 30,000 troops sent by Napoleon III. In June of that same year the invading army reached the Cd. Of Mexico.
This forced the government to relocate in different locations, reaching placed in Cd. Juarez, Chihuahua, formerly known as Paso del Norte, where the war continued in defense of the country. At the same time the Conservatives continued to establish a monarchy for the country.
Conservatives, having taken the Cd. De Mexico, called an assembly where proclaimed the creation of the Mexican Empire and offered the throne to Maximilian of Hapsburg.
Two years after being at war with France Maximilian and Carlota arrived in Mexico to deal with the monarchical government supported by conservatives, liberals never recognized this authority, yet the empire managed to prevail in the areas of the country dominated the French army.
During the guy hard the French invasion there were two governments, one Republican and one monarchy, supported by foreign forces.
The empire of Maximilian took a series of measures that led the Conservatives would withdraw their support because I ratify the Reform laws, rather than oppose, chose as collaborators some liberals were returned land to indigenous peoples and decreed 10 working days working hours and prohibiting physical punishment put workers.
On the other hand the emperor Napoleon III withdrew its military and economic support for Maximilian, by US pressure to vacate Mexico, as France was at war with Germany.
By losing this support the rule weakened and the Liberals regained the territories, which were in the hands of the French.
Maximiliano takes refuge in Queretaro with his troops, and is defeated was sentenced to death and executed in 1867.
The restoration of the Republic.
In 1867, Mexico City hosted Juarez, who returned triumphant after the defeat of the Empire. So 1867 and 1867 is known as Triunfo de la Republica.
After the war Juárez restored his cabinet including some civilians and one military, among them was Porfirio Diaz.
The difficult economic situation worsened, the failure to have enough money, so the successor to Juarez, Sebastian Lerdo de Tejada, knew he needed boost to the country reviving agricultural production, build railroads and promote industry.
Consequently they focused on reorganizing public finances, to get resources and improve the situation. But they could not carry out their plans, since the peasants were deprived of their land, insecurity of their ways and also the lifting of some military leaders.
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Maximiliano y Carlota Capítulo I, El sueño Imperial