Flight of capital

This huge flight of capital from Mexico had been triggered by the impending Mexican-American war. After the Alamo was taken by Santa Anna, in 1838, conflict between Mexico and the expansionary aims of the United States gradually developed. By 1845 it was clear that, with the rumours of war, merchants with dealings in Mexico had reason to be worried. By the time president Polk had declared war on Mexico in May 1846 - about the time that 'Constance' was being prepared for its first and only voyage as a sailing ship - a merchant in Paris was writing, with concern, to his bankers in London.
' Paris. 9th May 1846. Messers F Huth and Co. London.' "Gentlemen. I received in due course your favour in date 16th ult, in answer to my two letters dated 13th and 14th of the same. In reply I now beg to state that I feel truly grateful for the cordial manner in which you, on that occasion, acceded to my wishes by deferring the sale of my Mexican Stocks. Returning you my thanks I beg also to assure you that I shall endeavour, as soon as convenient, to put my account with you on the footing alluded to in your said favour and for doing so in part, I request you to credit me when cashed with the proceeds of the inclosed bill for Ł 400 at 60 days sight. I have reason to expect other remittances by the next packet or, at latest, by that of July and as these are especially intended to cover my debit with you, I shall still, in the meantime, retain my stocks, as in view of the large importations in part arrived and expected at the departure of the Steamer, there appear now good prospects for one dividend at least, as the proportion of duties allotted to the bonds must amount to something considerable in the months of May, June and July; but as on the other hand, the political state of Mexico is such, that there is hardly any counting or any thing with certainty, I must beg the continuation of your kindness by allowing the balance of my debit to stand over till such time as I can cover it from Mexico where the largest part of my means are situated."

	Two sections of the letter of 9th May 1846. Subsequent letters show that the financial situation of merchants trading with Mexico was beginning to be dire.
The letter was written by Benjamin Laurent. When a further month and three further letters had passed, Laurent had even more concerns. He was in danger of losing the value of his Mexican Bonds which he had bought for Ł7,900. The bankers in London - Huth and Co - allowed him to take a loan for about Ł1,500 but Laurent's last letter indicates he was expecting that his Mexican Bonds which he intended to sell immediately might not cover his debts. Traders with Mexican contracts had financial problems for the next few years.
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