years of civil strife. So much real estate suddenly thrown upon the
market depreciated property. The easy terms of sale--a third cash, the
balance to be paid in pagares--tempted speculators and gave rise to many
fraudulent transactions, and the measure brought little relief to the
government.

Although in March, 1861, President Juarez had signed a convention
adjusting anew the pecuniary claims of the French residents, on July 17
Congress found itself compelled to suspend payment on all agreements
hitherto entered into with foreign powers. The very next day the
representatives of France and Great Britain entered a formal protest on
behalf of their governments. On July 25, having obtained no
satisfaction, they suspended all diplomatic relations with the Mexican
government.

Feeling ran high between Mexicans and foreigners. The speculators in
Mexican bonds, as well as more innocent sufferers, were loud in their
denunciations. The Swiss banker Jecker,* who had cleverly managed to
enlist the interest of powerful supporters at the court of Napoleon III,
and who had become naturalized in order to add weight to his claim to
French support, spared no pains in exciting the resentment of the French
with regard to this violation of its pledges by the Mexican
government.**

* The French claims against the Mexican government amounted to
50,000,000 francs. Jecker's interests suffered most by the decree of
President Juarez of July 17,1861. Under Miramon he had negotiated, on
behalf of the clerical party, the new issue of six-per-cent. bonds of
75,000,000 francs, destined to take up the old discredited government
bonds, twenty-five per cent. being paid in silver by the holders, and