The year 1197 promised great things for Richard in his war with the king of France, but yielded little. He succeeded in forming a coalition among the chief barons of the north, which recalls the diplomatic successes of his ancestor, Henry I. The young Count Baldwin of Flanders and Hainault had grievances of his own against Philip which he was anxious to avenge. Count Philip, who had exercised so strong an influence over King Philip at the time of his accession, had died early in the crusade, and the Count of Hainault on succeeding him had been compelled to give up to France a large strip of territory adjoining Philip's earlier annexation, and on his death Count Baldwin had had to pay a heavy relief. The coalition was joined by the Counts of Boulogne and Blois, and Britanny was practically under the control of Richard. Philip, however, escaped the danger that threatened him by some exercise of his varied talents of which we do not know the exact details. Led on in pursuit of the Count of Flanders until he was almost cut off from return, he purchased his retreat by a general promise to restore the count all his rights and to meet Richard in a conference on the terms of peace. On Richard's side the single advantage gained during the campaign was the capture of the cousin of the French king, Philip of Dreux, the warlike Bishop of Beauvais, whose raids along the border and whose efforts at the court of Henry VI of Germany against his release from imprisonment had so enraged Richard that he refused upon any terms or under any pressure to set him free as long as he lived. The interview between the kings took place on September 17, when a truce for something more than a year was agreed upon to allow time for arranging the terms of a permanent peace.

The year closed in England with an incident of great interest, but one which has sometimes been made to bear an exaggerated importance. At a council of the kingdom held at Oxford on December 7, the justiciar presented a demand of the king that the baronage should unite to send him at their expense three hundred knights for a year's service with him abroad. Evidently it was hoped that the clergy would set a good example. The archbishop himself expressed his willingness to comply, and was followed by the Bishop of London to the same effect. Then Bishop Hugh of Lincoln, being called upon for his answer, to the great indignation of the justiciar, flatly refused on the ground that his church was not liable for service abroad. The Bishop of Salisbury, next called upon, made the same refusal; and the justiciar seeing that the plan was likely to fail dissolved the council in anger. One is tempted to believe that some essential point is omitted from the accounts we have of this incident, or that some serious mistake has been made in them, either in the speech of Bishop Hugh given us in his biography or in the terms of Richard's demand recorded in two slightly different forms. Hubert must have believed that the baronage in general were going to follow the example given them by the two bishops and refuse the required service, or he would not have dissolved the council and reported to the king that his plan had failed. But to refuse this service on the ground that it could not be required except in England was to go against the unbroken practice of more than a hundred years. Nor was there anything contrary to precedent in the demand for three hundred knights to serve a year. The union of the military tenants to equip a smaller force than the whole service due to the lord, but for a longer time than the period of required feudal service, was not uncommon. The demand implied a feudal force due to the king from England of less than three thousand knights, and this was well within his actual rights, though if we accept the very doubtful statement of one of our authorities that their expenses were to be reckoned at the rate of three shillings per day, the total cost would exceed that of any ordinary scutage.

Richard clearly believed, as did his justiciar, that he was making no illegal demand, for he ordered the confiscation of the baronies of the two bishops, and Herbert of Salisbury was obliged to pay a fine. It was only a personal journey to Normandy and the great reputation for sanctity of the future St. Hugh of Lincoln that relieved him from the same punishment. The importance of the right of consent to taxation in the growth of the constitution has led many writers to attach a significance to this incident which hardly belongs to it. Whatever were the grounds of his action, the Bishop of Lincoln could have been acting on no general constitutional principle. He must have been insisting on personal rights secured to him by the feudal law. If his action contributed largely, as it doubtless did, to that change of earlier conditions which led to the beginning of the constitution, it was less because he tried to revive a principle of general application, which as a matter of fact had never existed, than because he established a precedent of careful scrutiny of the king's rights and of successful resistance to a demand possibly of doubtful propriety. It is as a sign of the times, as the mark of an approaching revolution, that the incident has its real interest.

About the time that Richard sent over to England his demand for three hundred knights news must have reached him of an event which would seem to open the way to a great change in continental affairs. The far-reaching plans of the emperor, Henry VI, had been brought to an end by his death in Sicily on September 28, 1197, in the prime of his life. His son, the future brilliant Emperor Frederick II, was still an infant, and there was a prospect that the hold of the Hohenstaufen on the empire might be shaken off. About Christmas time an embassy reached Richard from the princes of Germany, summoning him on the fealty he owed the empire to attend a meeting at Cologne on February 22 to elect an emperor. This he could not do, but a formal embassy added the weight of his influence to the strong Guelfic party; and his favourite nephew, who had been brought up at his court, was elected emperor as Otto IV. The Hohenstaufen party naturally did not accept the election, and Philip of Suabia, the brother of Henry VI, was put up as an opposition emperor, but for the moment the Guelfs were the stronger, and they enjoyed the support of the young and vigorous pope, Innocent III, who had just ascended the papal throne, so that even Philip II's support of his namesake of Suabia was of little avail.

From the change Richard gained in reality nothing. It was still an age when the parties to international alliances sought only ends to be gained within their own territories, or what they believed should be rightfully their territories, and the objects of modern diplomacy were not yet regarded. The truce of the preceding September, which was to last through the whole of the year 1198, was as little respected as the others had been. As soon as it was convenient, the war was reopened, the baronial alliance against the king of France still standing, and Baldwin of Flanders joining in the attack. At the end of September Richard totally defeated the French, and drove their army in wild flight through the town of Gisors, precipitating Philip himself into the river Epte by the breaking down of the bridge under the weight of the fugitives, and capturing a long list of prisoners of distinction, three of them, a Montmorency among them, overthrown by Richard's own lance, as he boasted in a letter to the Bishop of Durham. Other minor successes followed, and Philip found himself reduced to straits in which he felt obliged to ask the intervention of the pope in favour of peace. Innocent III, anxious for a new crusade and determined to make his influence felt in every question of the day, was ready to interfere on his own account; and his legate, Cardinal Peter, brought about an interview between the two kings on January 13, 1199, when a truce for five years was verbally agreed upon, though the terms of a permanent treaty were not yet settled.

In the meantime financial difficulties were pressing heavily upon the king of England. Scutages for the war in Normandy had been taken in 1196 and 1197. In the next year a still more important measure of taxation was adopted, which was evidently intended to bring in larger sums to the treasury than an ordinary scutage. This is the tax known as the Great Carucage of 1198. The actual revenue that the king derived from it is a matter of some doubt, but the machinery of its assessment is described in detail by a contemporary and is of special interest.[58] The unit of the new assessment was to be the carucate, or ploughland, instead of the hide, and consequently a new survey of the land was necessary to take the place of the old Domesday record. To obtain this, practically the same machinery was employed as in the earlier case, but to the commissioners sent into each county by the central government two local knights, chosen from the county, were added to form the body before whom the jurors testified as to the ownership and value of the lands in their neighbourhoods. Thanks to the rapid judicial advance and administrative reforms of the past generation, the jury was now a familiar institution everywhere and was used for many purposes. Its employment in this case to fix the value of real property for taxation, and of personal property as in the Saladin tithe of 1188, though but a revival of its earlier use by William I, marks the beginning of a continuous employment of jurors in taxation in the next period which led to constitutional results—the birth of the representative system, and we may almost say to the origin of Parliament in the proper meaning of the term—results of even greater value in the growth of our civil liberty than any which came from it in the sphere of judicial institutions important as these were.

Now in the spring of 1199 a story reached Richard of the finding of a wonderful treasure on the land of the lord of Chalus, one of his under vassals in the Limousin. We are told that it was the images of an emperor, his wife, sons, and daughters, made of gold and seated round a table also of gold. If the story were true, here was relief from his difficulties, and Richard laid claim to the treasure as lord paramount of the land. This claim was of course disputed, and with his mercenaries the king laid siege to the castle of Chalus. It was a little castle and poorly defended, but it resisted the attack for three days, and on the third Richard, who carelessly approached the wall, was shot by a crossbow bolt in the left shoulder near the neck. The wound was deep and was made worse by the surgeon in cutting out the head of the arrow. Shortly gangrene appeared, and the king knew that he must die. In the time that was left him he calmly disposed of all his affairs. He sent for his mother who was not far away, and she was with him when he died. He divided his personal property among his friends and in charity, declared John to be his heir, and made the barons who were present swear fealty to him. He ordered the man who had shot him to be pardoned and given a sum of money; then he confessed and received the last offices of the Church, and died on April 6, 1199, in the forty-second year of his age.

The twelfth century was drawing to its end when Richard died, but the close of the century was then as always in history a purely artificial dividing line. The real historical epoch closed, a new age began with the granting of the Great Charter. The date may serve, however, as a point from which to review briefly one of the growing interests of England that belongs properly within the field of its political history—its organized municipal life. The twelfth century shows a slow, but on the whole a constant, increase in the number, size, and influence of organized towns in England, and of the commerce, domestic and foreign, on which their prosperity rested. Even in the long disorder of Stephen's reign the interruption of this growth seems to have been felt rather in particular places than in the kingdom as a whole, and there was no serious set-back of national prosperity that resulted from it. Not with the rapidity of modern times, but fairly steadily through the century, new articles appear in commerce; manufactures rise to importance, like that of cloth; wealth and population accumulate in the towns, and they exert an unceasing pressure on the king, or on the lords in whose domain they are, for grants of privileges.

Such grants from the king become noticeably frequent in the reign of Richard and are even more so under John. The financial necessities of both kings and their recklessness, at least that of Richard, in the choice of means to raise money, made it easy for the boroughs to purchase the rights or exemptions they desired. The charters all follow a certain general type, but there was no fixed measure of privilege granted by them. Each town bargained for what it could get from a list of possible privileges of some length. The freedom of the borough; the right of the citizens to have a gild merchant; exemption from tolls, specified or general, within a certain district or throughout all England or also throughout the continental Angevin dominions; exemption from the courts of shire and hundred, or from the jurisdiction of all courts outside the borough, except in pleas of the crown, or even without this exception; the right to farm the revenues of the borough, paying a fixed "firma," or rent, to the king, and with this often the right of the citizens to elect their own reeve or even sheriff to exempt them from the interference of the king's sheriff of the county. This list is not a complete one of the various rights and privileges granted by the charters, but only of the more important ones.

To confer these all upon a town was to give it the fullest right obtained by English towns and to put it practically in the position which London had reached in the charter of Henry I's later years. London, if we may trust our scanty evidence, advanced at one time during this period to a position reached by no other English city, to the position of the French commune.[59] Undoubtedly the word "commune," like other technical words, was sometimes used at the time loosely and vaguely, but in its strict and legal sense it meant a town raised to the position of a feudal vassal and given all the rights as well as duties of a feudal lord, a seigneurie collective populaire, as a French scholar has called it.[60] Thus regarded, the town had a fulness of local independence to be obtained in no other way. To such a position no English city but London attained, and it may be thought that the evidence in London's case is not full enough to warrant us in believing that it reached the exact legal status of a commune.