In November, 1504, Isabel the Catholic had died; and Philip and his consort at once assumed the titles of King and Queen of Castile, in spite of the opposition of Ferdinand, who claimed the right of regency during his life-time. Both parties were anxious to obtain the support of Henry VII. Already since the accession of Philip the commercial relations between England and the Netherlands had been placed on what proved to be a permanently friendly basis by the treaty known as the Magnus Intercursus of 1496. Flanders and Brabant were dependent upon the supply of English wool for their staple industries, Holland and Zeeland for that freedom of fishery on which a large part of their population was employed and subsisted. In reprisals for the support formerly given by the Burgundian government to the house of York, Henry had forbidden the exportation of wool and of cloth to the Netherlands, had removed the staple from Bruges to Calais, and had withdrawn the fishing rights enjoyed by the Hollanders since the reign of Edward I. But this state of commercial war was ruinous to both countries; and, on condition that Philip henceforth undertook not to allow any enemies of the English government to reside in his dominions, a good understanding was reached, and the Magnus Intercursus, which re-established something like freedom of trade between the countries, was duly signed in February, 1496. The treaty was solemnly renewed in 1501, but shortly afterwards fresh[pg.17] difficulties arose concerning Yorkist refugees, and a stoppage of trade was once more threatened. At this juncture a storm drove Philip and Juana, who had set sail in January, 1506, for Spain, to take refuge in an English harbour. For three months they were hospitably entertained by Henry, but he did not fail to take advantage of the situation to negotiate three treaties with his unwilling guest: (1) a treaty of alliance, (2) a treaty of marriage with Philip's sister, the Archduchess Margaret, already at the age of 25 a widow for the second time, (3) a revision of the treaty of commerce of 1496, named from its unfavourable conditions, Malus Intercursus. The marriage treaty came to nothing through the absolute refusal of Margaret to accept the hand of the English king.
Philip and Juana left England for Spain, April 23, to assume the government of the three kingdoms, Castile, Leon and Granada, which Juana had inherited from her mother. Owing to his wife's mental incapacity Philip in her name exercised all the powers of sovereignty, but his reign was very short, for he was suddenly taken ill and died at Burgos, September 25, 1506. His hapless wife, after the birth of a posthumous child, sank into a state of hopeless insanity and passed the rest of her long life in confinement. Charles, the heir to so vast an inheritance, was but six years old. The representatives of the provinces, assembled at Mechlin (October 18), offered the regency of the Burgundian dominions to the Emperor Maximilian; he in his turn nominated his daughter, Margaret, to be regent in his place and guardian of his grandson during Charles' minority, and she with the assent of the States-General took the oath on her installation as Mambour or Governor-General of the Netherlands, March, 1507. Margaret was but 27 years of age, and for twenty-four years she continued to administer the affairs of the Netherlands with singular discretion, firmness and Statesmanlike ability. The superintendence and training of the young archduke could have been placed in no better hands. Charles, who with his three sisters lived with his aunt at Mechlin, was thus both by birth and education a Netherlander.
One of the first acts of Margaret was a refusal to ratify the Malus Intercursusand the revival of the Magnus Intercursus of 1496. This important commercial treaty from that time forward continued in force for more than a century. The great difficulty that Margaret encountered in her government was the lack of [pg.18] adequate financial resources. The extensive privileges accorded to the various provinces and their mutual jealousies and diverse interests made the task of levying taxes arduous and often fruitless. Margaret found that the granting of supplies, even for so necessary a purpose as the raising of troops to resist the raids of Charles of Gelderland, aided by the French king, into Utrecht and Holland, was refused. She fortunately possessed in a high degree those qualities of persuasive address and sound judgment, which gave to her a foremost place among the diplomatists and rulers of her time. Such was the confidence that her brilliant abilities inspired that she was deputed both by the Emperor Maximilian and by Ferdinand of Aragon to be their plenipotentiary at the Peace Congress that assembled at Cambray in November, 1508. Chiefly through her exertions the negotiations had a speedy and successful issue, and the famous treaty known as the League of Cambray was signed on December 10. By this treaty many of the disputes concerning the rights and prerogatives of the French crown in the Burgundian Netherlands were amicably settled; and it was arranged that Charles of Egmont should be provisionally recognised as Duke of Gelderland on condition that he should give up the towns in Holland that he had captured and withdraw his troops within his own borders.
The extant correspondence between Maximilian and Margaret, which is of the most confidential character, on matters of high policy, is a proof of the high opinion the emperor entertained of his daughter's intelligence and capacity. In nothing was his confidence more justified than in the assiduous care and interest that the regent took in the education of the Archduke Charles and his three sisters, who had been placed in her charge. In 1515 Charles, on entering his sixteenth year, was declared by Maximilian to be of age; Margaret accordingly handed over to him the reins of government and withdrew for the time into private life. Her retirement was not, however, to be of long continuance. On January 23, 1516, King Ferdinand of Aragon died, and Charles, who now became King of Castile and of Aragon, was obliged to leave the Netherlands to take possession of his Spanish dominions. Before sailing he reinstated his aunt as governess, and appointed a council to assist her. This post she continued to hold till the day of her death, for Charles was never again able to take up his permanent residence in the Netherlands. During the first years[pg.19] after his accession to the thrones of Ferdinand and Isabel he was much occupied with Spanish affairs; and the death of Maximilian, January 12, 1519, opened out to him a still wider field of ambition and activity. On June 28 Charles was elected emperor, a result which he owed in no small degree to the diplomatic skill and activity of Margaret. Just a year later the emperor visited the Netherlands, where Charles of Gelderland was again giving trouble, and his presence was required both for the purpose of dealing with the affairs of the provinces and also for securing a grant of supply, for he was sorely in need of funds. Margaret had at his request summoned the States-General to meet at Brussels, where Charles personally addressed them, and explained at some length the reasons which led him to ask his loyal and devoted Netherland subjects for their aid on his election to the imperial dignity. The States-General on this, as on other occasions, showed no niggardliness in responding to the request of a sovereign who, though almost always absent, appealed to their patriotism as a born Netherlander, who had been brought up in their midst and spoke their tongue. Charles was crowned at Aachen, October 23, 1520, and some three months later presided at the famous diet of Worms, where he met Martin Luther face to face. Before starting on his momentous journey he again appointed Margaret regent, and gave to her Council, which he nominated, large powers; the Council of Mechlin, the Court of Holland and other provincial tribunals being subjected to its superior authority and jurisdiction. By this action the privileges of the provinces were infringed, but Charles was resolute in carrying out the centralising policy of his ancestors, the Dukes of Burgundy, and he had the power to enforce his will in spite of the protests that were raised. And so under the wise and conciliatory but firm administration of Margaret during a decade of almost continuous religious and international strife—a decade marked by such great events as the rapid growth of the Reformation in Germany, the defeat and capture of Francis I at Pavia, the sack of Rome by the troops of Bourbon and the victorious advance of the Turks in Hungary and along the eastern frontier of the empire—the Netherland provinces remained at peace, save for the restless intrigues of Charles of Egmont in Gelderland, and prospered. Their wealth furnished indeed no small portion of the funds which enabled Charles to face[pg.20] successfully so many adversaries and to humble the power of France. The last important act of Margaret, like her first, was connected with the town of Cambray. In this town, as the representative and plenipotentiary of her nephew the emperor, she met, July, 1529, Louise of Savoy, who had been granted similar powers by her son Francis I, to negotiate a treaty of peace. The two princesses proved worthy of the trust that had been placed in them, and a general treaty of peace, often spoken of as "the Ladies' Peace," was speedily drawn up and ratified. The conditions were highly advantageous to the interests of Spain and the Netherlands. On November 30 of the following year Margaret died, as the result of a slight accident to her foot which the medical science of the day did not know how to treat properly, in the 50th year of her age and the 24th of her regency.
Charles, who had a few months previously reached the zenith of his power by being crowned with the iron crown of Lombardy and with the imperial crown at the hands of Pope Clement VII at Bologna (February 22 and 24, 1530), appointed as governess in Margaret's place his sister Mary, the widowed queen of Louis, King of Hungary, who had been slain by the Turks at the battle of Mohacs, August 29, 1526.
Mary, who had passed her early life in the Netherlands under the care of her aunt Margaret, proved herself in every way her worthy successor. She possessed, like Margaret, a strong character, statesmanlike qualities and singular capacity in the administration of affairs. She filled the difficult post of regent for the whole period of twenty-four years between the death of Margaret and the abdication of Charles V in 1555. It was fortunate indeed for that great sovereign that these two eminent women of his house should, each in turn for one half of his long reign, have so admirably conducted the government of this important portion of his dominions, as to leave him free for the carrying out of his far-reaching political projects and constant military campaigns in other lands. Two years after Mary entered upon her regency Charles appointed three advisory and administrative bodies—the Council of State, the Council of Finance and the Privy Council—to assist her in the government. The Council of State dealt with questions of external and internal policy and with the appointment of officials; the Council of Finance with the care of the revenue and private[pg.21] domains of the sovereign; to the Privy Council were entrusted the publication of edicts and "placards," and the care of justice and police.
When Charles succeeded Philip the Fair only a portion of the Netherlands was subject to his sway. With steady persistence he set himself to the task of bringing all the seventeen provinces under one sovereign. In 1515 George of Saxe-Meissen sold to him his rights over Friesland. Henry of Bavaria, who in opposition to his wishes had been elected Bishop of Utrecht, was compelled (1528) to cede to him the temporalities of the see, retaining the spiritual office only. Charles thus added the Upper and Lower Sticht—Utrecht and Overyssel—to his dominions. He made himself (1536) master of Groningen and Drente after a long and obstinate struggle with Charles of Gelderland, and seven years later he forced Charles' successor, William of Jülich and Cleves, to renounce in his favour his claims to Gelderland and Zutphen. During the reign of Charles V the States-General were summoned many times, chiefly for the purpose of voting subsidies, but it was only on special and solemn occasions, that the representatives of all the seventeen provinces were present, as for instance when Philip received their homage in 1549 and when Charles V announced his abdication in 1555. The names of the seventeen provinces summoned on these occasions were Brabant, Limburg, Luxemburg, Gelderland, Flanders, Holland, Zeeland, Artois, Hainault, Namur, Lille with Douay and Orchies, Tournay and district, Mechlin, Friesland, Utrecht, Overyssel with Drente and Groningen. The bishopric of Liège, though nominally independent, was under the strict control of the government at Brussels. The relations of Charles' Burgundian domains to the empire were a matter of no small moment, and he was able to regulate them in a manner satisfactory to himself. Several times during his reign tentative attempts were made to define those relations, which were of a very loose kind. The fact that the head of the house of Habsburg was himself emperor had not made him any less determined than the Burgundian sovereigns, his ancestors, to assert for his Netherland territories a virtual independence of imperial control or obligation. The various states of which the Netherlands were composed were as much opposed as the central government at Brussels to any recognition of the claims of the empire; and both[pg.22] Margaret of Austria and Mary of Hungary ventured to refuse to send representatives to the imperial diets, even when requested to do so by the emperor. At last in 1548, when all the Netherland provinces had been brought under the direct dominion or control of one sovereign prince, a convention was drawn up at the diet of Augsburg, chiefly by the exertions of the Regent Mary and her tried councillors Viglius and Granvelle, by which the unity of the Netherland territories was recognised and they were freed from imperial jurisdiction. Nominally, they formed a circle of the empire,—the Burgundian circle—and representatives of the circle were supposed to appear at the diets and to bear a certain share of imperial taxation in return for the right to the protection of the empire against attacks by France. As a matter of fact, no representatives were ever sent and no subsidy was paid, nor was the protection of the empire ever sought or given.
This convention, which in reality severed the shadowy links which had hitherto bound the Netherlands to the empire, received the sanction of the States-General in October, 1548; and it was followed by the issuing, with the consent of the Estates of the various provinces, of a "Pragmatic Sanction" by which the inherited right of succession to the sovereignty in each and every province was settled upon the male and female line of Charles' descendants, notwithstanding the existence of ancient provincial privileges to the contrary. In 1549 the emperor's only son Philip was acknowledged by all the Estates as their future sovereign, and made a journey through the land to receive homage.
The doctrines of the Reformation had early obtained a footing in various parts of the Netherlands. At first it was the teaching of Luther and of Zwingli which gained adherents. Somewhat later the Anabaptist movement made great headway in Holland and Friesland, especially in Amsterdam. The chief leaders of the Anabaptists were natives of Holland, including the famous or infamous John of Leyden, who with some thousands of these fanatical sectaries perished at Münster in 1535. Between 1537 and 1543 a more moderate form of Anabaptist teaching made rapid progress through the preaching of a certain Menno Simonszoon. The followers of this man were called Mennonites. Meanwhile Lutheranism and Zwinglianism were in many parts of the country being supplanted by the sterner doctrines of Calvin. All these movements[pg.23] were viewed by the emperor with growing anxiety and detestation. Whatever compromises with the Reformation he might be compelled to make in Germany, he was determined to extirpate heresy from his hereditary dominions. He issued a strong placard soon after the diet of Worms in 1521 condemning Luther and his opinions and forbidding the printing or sale of any of the reformer's writings; and between that date and 1555 a dozen other edicts and placards were issued of increasing stringency. The most severe was the so-called "blood-placard" of 1550. This enacted the sentence of death against all convicted of heresy—the men to be executed with the sword and the women buried alive; in cases of obstinacy both men and women were to be burnt. Terribly harsh as were these edicts, it is doubtful whether the number of those who Suffered the extreme penalty has not been greatly exaggerated by partisan writers. Of the thousands who perished, by far the greater part were Anabaptists; and these met their fate rather as enemies of the state and of society, than as heretics. They were political as well as religious anarchists.
In the time of Charles the trade and industries of the Netherlands were in a highly prosperous state. The Burgundian provinces under the wise administrations of Margaret and Mary, and protected by the strong arm of the emperor from foreign attack, were at this period by far the richest state in Europe and the financial mainstay of the Habsburg power. Bruges, however, had now ceased to be the central market and exchange of Europe, owing to the silting up of the river Zwijn. It was no longer a port, and its place had been taken by Antwerp. At the close of the reign of Charles, Antwerp, with its magnificent harbour on the Scheldt, had become the "counting-house" of the nations, the greatest port and the wealthiest and most luxurious city in the world. Agents of the principal bankers and merchants of every country had their offices within its walls. It has been estimated that, inclusive of the many foreigners who made the town their temporary abode, the population of Antwerp in 1560 was about 150,000. Five hundred vessels sailed in and out of her harbour daily, and five times that number were to be seen thronging her wharves at the same time.