Please explain the terms of the Treaty of Guadalupe Hidalgo. Why do you suppose that the United States, after winning the war, still paid Mexico for New Mexico and California?

The Treaty of Guadalupe Hidalgo, that brought an official end to the Mexican-American War (1846-1848), was signed on February 2, 1848, at Guadalupe Hidalgo, a city north of the capital where the Mexican government had fled with the advance of U.S. forces. By its terms, Mexico ceded 55 percent of its territory, including parts of present-day Arizona, California, New Mexico, Texas, Colorado, Nevada, and Utah, to the United States. Mexico relinquished all claims to Texas, and recognized the Rio Grande as the southern boundary with the United States.

With the defeat of its army and the fall of its capital in September 1847, Mexico entered into negotiations with the U.S. peace envoy, Nicholas Trist, to end the war. The treaty called for the United States to pay US$15 million to Mexico and to pay off the claims of American citizens against Mexico up to US$5 million.

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it allows businesses to raise prices on basic goods. it allows consumers to spend more money on products. it increases government revenue to fund public projects. it provides more money for government assistance programs.

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