The state of affairs in Saxony enabled the Emperor to make some bolder experiments in that quarter. In the bishoprics of Magdeburg and Halberstadt, the Protestant canons had not hesitated to elect bishops of their own religion. Both bishoprics, with the exception of the town of Magdeburg itself, were overrun by the troops of Wallenstein. It happened, moreover, that by the death of the Administrator Duke Christian of Brunswick, Halberstadt was vacant, as was also the Archbishopric of Magdeburg by the deposition of Christian William, a prince of the House of Brandenburgh. Ferdinand took advantage of the circumstance to restore the see of Halberstadt to a Roman Catholic bishop, and a prince of his own house. To avoid a similar coercion, the Chapter of Magdeburg hastened to elect a son of the Elector of Saxony as archbishop. But the pope, who with his arrogated authority interfered in this matter, conferred the Archbishopric of Magdeburg also on the Austrian prince. Thus, with all his pious zeal for religion, Ferdinand never lost sight of the interests of his family.

At length, when the peace of Lubeck had delivered the Emperor from all apprehensions on the side of Denmark, and the German Protestants seemed entirely powerless, the League becoming louder and more urgent in its demands, Ferdinand, in 1629, signed the Edict of Restitution, (so famous by its disastrous consequences,) which he had previously laid before the four Roman Catholic electors for their approbation. In the preamble, he claimed the prerogative, in right of his imperial authority, to interpret the meaning of the religious treaty, the ambiguities of which had already caused so many disputes, and to decide as supreme arbiter and judge between the contending parties. This prerogative he founded upon the practice of his ancestors, and its previous recognition even by Protestant states. Saxony had actually acknowledged this right of the Emperor; and it now became evident how deeply this court had injured the Protestant cause by its dependence on the House of Austria. But though the meaning of the religious treaty was really ambiguous, as a century of religious disputes sufficiently proved, yet for the Emperor, who must be either a Protestant or a Roman Catholic, and therefore an interested party, to assume the right of deciding between the disputants, was clearly a violation of an essential article of the pacification. He could not be judge in his own cause, without reducing the liberties of the empire to an empty sound.

And now, in virtue of this usurpation, Ferdinand decided, "That every secularization of a religious foundation, mediate or immediate, by the Protestants, subsequent to the date of the treaty, was contrary to its spirit, and must be revoked as a breach of it." He further decided, "That, by the religious peace, Catholic proprietors of estates were no further bound to their Protestant subjects than to allow them full liberty to quit their territories." In obedience to this decision, all unlawful possessors of benefices—the Protestant states in short without exception—were ordered, under pain of the ban of the empire, immediately to surrender their usurped possessions to the imperial commissioners.

This sentence applied to no less than two archbishoprics and twelve bishoprics, besides innumerable abbacies. The edict came like a thunderbolt on the whole of Protestant Germany; dreadful even in its immediate consequences; but yet more so from the further calamities it seemed to threaten. The Protestants were now convinced that the suppression of their religion had been resolved on by the Emperor and the League, and that the overthrow of German liberty would soon follow. Their remonstrances were unheeded; the commissioners were named, and an army assembled to enforce obedience. The edict was first put in force in Augsburg, where the treaty was concluded; the city was again placed under the government of its bishop, and six Protestant churches in the town were closed. The Duke of Wirtemberg was, in like manner, compelled to surrender his abbacies. These severe measures, though they alarmed the Protestant states, were yet insufficient to rouse them to an active resistance. Their fear of the Emperor was too strong, and many were disposed to quiet submission. The hope of attaining their end by gentle measures, induced the Roman Catholics likewise to delay for a year the execution of the edict, and this saved the Protestants; before the end of that period, the success of the Swedish arms had totally changed the state of affairs.

In a Diet held at Ratisbon, at which Ferdinand was present in person (in 1630), the necessity of taking some measures for the immediate restoration of a general peace to Germany, and for the removal of all grievances, was debated. The complaints of the Roman Catholics were scarcely less numerous than those of the Protestants, although Ferdinand had flattered himself that by the Edict of Restitution he had secured the members of the League, and its leader by the gift of the electoral dignity, and the cession of great part of the Palatinate. But the good understanding between the Emperor and the princes of the League had rapidly declined since the employment of Wallenstein. Accustomed to give law to Germany, and even to sway the Emperor's own destiny, the haughty Elector of Bavaria now at once saw himself supplanted by the imperial general, and with that of the League, his own importance completely undermined. Another had now stepped in to reap the fruits of his victories, and to bury his past services in oblivion. Wallenstein's imperious character, whose dearest triumph was in degrading the authority of the princes, and giving an odious latitude to that of the Emperor, tended not a little to augment the irritation of the Elector. Discontented with the Emperor, and distrustful of his intentions, he had entered into an alliance with France, which the other members of the League were suspected of favouring. A fear of the Emperor's plans of aggrandizement, and discontent with existing evils, had extinguished among them all feelings of gratitude. Wallenstein's exactions had become altogether intolerable. Brandenburg estimated its losses at twenty, Pomerania at ten, Hesse Cassel at seven millions of dollars, and the rest in proportion. The cry for redress was loud, urgent, and universal; all prejudices were hushed; Roman Catholics and Protestants were united on this point. The terrified Emperor was assailed on all sides by petitions against Wallenstein, and his ear filled with the most fearful descriptions of his outrages. Ferdinand was not naturally cruel. If not totally innocent of the atrocities which were practised in Germany under the shelter of his name, he was ignorant of their extent; and he was not long in yielding to the representation of the princes, and reduced his standing army by eighteen thousand cavalry. While this reduction took place, the Swedes were actively preparing an expedition into Germany, and the greater part of the disbanded Imperialists enlisted under their banners.

The Emperor's concessions only encouraged the Elector of Bavaria to bolder demands. So long as the Duke of Friedland retained the supreme command, his triumph over the Emperor was incomplete. The princes of the League were meditating a severe revenge on Wallenstein for that haughtiness with which he had treated them all alike. His dismissal was demanded by the whole college of electors, and even by Spain, with a degree of unanimity and urgency which astonished the Emperor. The anxiety with which Wallenstein's enemies pressed for his dismissal, ought to have convinced the Emperor of the importance of his services. Wallenstein, informed of the cabals which were forming against him in Ratisbon, lost no time in opening the eyes of the Emperor to the real views of the Elector of Bavaria. He himself appeared in Ratisbon, with a pomp which threw his master into the shade, and increased the hatred of his opponents.

Long was the Emperor undecided. The sacrifice demanded was a painful one. To the Duke of Friedland alone he owed his preponderance; he felt how much he would lose in yielding him to the indignation of the princes. But at this moment, unfortunately, he was under the necessity of conciliating the Electors. His son Ferdinand had already been chosen King of Hungary, and he was endeavouring to procure his election as his successor in the empire. For this purpose, the support of Maximilian was indispensable. This consideration was the weightiest, and to oblige the Elector of Bavaria he scrupled not to sacrifice his most valuable servant.

At the Diet at Ratisbon, there were present ambassadors from France, empowered to adjust the differences which seemed to menace a war in Italy between the Emperor and their sovereign. Vincent, Duke of Mantua and Montferrat, dying without issue, his next relation, Charles, Duke of Nevers, had taken possession of this inheritance, without doing homage to the Emperor as liege lord of the principality. Encouraged by the support of France and Venice, he refused to surrender these territories into the hands of the imperial commissioners, until his title to them should be decided. On the other hand, Ferdinand had taken up arms at the instigation of the Spaniards, to whom, as possessors of Milan, the near neighbourhood of a vassal of France was peculiarly alarming, and who welcomed this prospect of making, with the assistance of the Emperor, additional conquests in Italy. In spite of all the exertions of Pope Urban VIII. to avert a war in that country, Ferdinand marched a German army across the Alps, and threw the Italian states into a general consternation. His arms had been successful throughout Germany, and exaggerated fears revived the olden apprehension of Austria's projects of universal monarchy. All the horrors of the German war now spread like a deluge over those favoured countries which the Po waters; Mantua was taken by storm, and the surrounding districts given up to the ravages of a lawless soldiery. The curse of Italy was thus added to the maledictions upon the Emperor which resounded through Germany; and even in the Roman Conclave, silent prayers were offered for the success of the Protestant arms.

Alarmed by the universal hatred which this Italian campaign had drawn upon him, and wearied out by the urgent remonstrances of the Electors, who zealously supported the application of the French ambassador, the Emperor promised the investiture to the new Duke of Mantua.

This important service on the part of Bavaria, of course, required an equivalent from France. The adjustment of the treaty gave the envoys of Richelieu, during their residence in Ratisbon, the desired opportunity of entangling the Emperor in dangerous intrigues, of inflaming the discontented princes of the League still more strongly against him, and of turning to his disadvantage all the transactions of the Diet. For this purpose Richelieu had chosen an admirable instrument in Father Joseph, a Capuchin friar, who accompanied the ambassadors without exciting the least suspicion. One of his principal instructions was assiduously to bring about the dismissal of Wallenstein. With the general who had led it to victory, the army of Austria would lose its principal strength; many armies could not compensate for the loss of this individual. It would therefore be a masterstroke of policy, at the very moment when a victorious monarch, the absolute master of his operations, was arming against the Emperor, to remove from the head of the imperial armies the only general who, by ability and military experience, was able to cope with the French king. Father Joseph, in the interests of Bavaria, undertook to overcome the irresolution of the Emperor, who was now in a manner besieged by the Spaniards and the Electoral Council. "It would be expedient," he thought, "to gratify the Electors on this occasion, and thereby facilitate his son's election to the Roman Crown. This object once gained, Wallenstein could at any time resume his former station." The artful Capuchin was too sure of his man to touch upon this ground of consolation.