In a private letter, written some weeks later (August 15), Egmont begged secretary Erasso to assure the King that their joint letter had not been dictated by passion, but by zeal for his service. It was impossible, he said, to imagine the insolence of the Cardinal, nor to form an idea of the absolute authority which he arrogated.

In truth, Granvelle, with all his keenness, could not see that Orange, Egmont, Berghen, Montigny and the rest, were no longer pages and young captains of cavalry, while he was the politician and the statesman. By six or seven years the senior of Egmont, and by sixteen years of Orange, he did not divest himself of the superciliousness of superior wisdom, not unjust nor so irritating when they had all been boys. In his deportment towards them, and in the whole tone of his private correspondence with Philip, there was revealed, almost in spite of himself, an affectation of authority, against which Egmont rebelled and which the Prince was not the man to acknowledge. Philip answered the letter of the two nobles in his usual procrastinating manner. The Count of Horn, who was about leaving Spain (whither he had accompanied the King) for the Netherlands, would be entrusted with the resolution which he should think proper to take upon the subject suggested. In the mean time, he assured them that he did not doubt their zeal in his service.

As to Count Horn, Granvelle had already prejudiced the King against him. Horn and the Cardinal had never been friends. A brother of the prelate had been an aspirant for the hand of the Admiral's sister, and had been somewhat contemptuously rejected. Horn, a bold, vehement, and not very good-tempered personage, had long kept no terms with Granvelle, and did not pretend a friendship which he had never felt. Granvelle had just written to instruct the King that Horn was opposed bitterly to that measure which was nearest the King's heart—the new bishoprics. He had been using strong language, according to the Cardinal, in opposition to the scheme, while still in Spain. He therefore advised that his Majesty, concealing, of course, the source of the information, and speaking as it were out of the royal mind itself, should expostulate with the Admiral upon the subject. Thus prompted, Philip was in no gracious humor when he received Count Horn, then about to leave Madrid for the Netherlands, and to take with him the King's promised answer to the communication of Orange and Egmont. His Majesty had rarely been known to exhibit so much anger towards any person as he manifested upon that occasion. After a few words from the Admiral, in which he expressed his sympathy with the other Netherland nobles, and his aversion to Granvelle, in general terms, and in reply to Philip's interrogatories, the King fiercely interrupted him: "What! miserable man!" he vociferated, "you all complain of this Cardinal, and always in vague language. Not one of you, in spite of all my questions, can give me a single reason for your dissatisfaction." With this the royal wrath boiled over in such unequivocal terms that the Admiral changed color, and was so confused with indignation and astonishment, that he was scarcely able to find his way out of the room.

This was the commencement of Granvelle's long mortal combat with Egmont, Horn, and Orange. This was the first answer which the seignors were to receive to their remonstrances against the churchman's arrogance. Philip was enraged that any opposition should be made to his coercive measures, particularly to the new bishoprics, the "holy work" which the Cardinal was ready, to "consecrate his fortune and his blood" to advance. Granvelle fed his master's anger by constant communications as to the efforts made by distinguished individuals to delay the execution of the scheme. Assonville had informed him, he wrote, that much complaint had been made on the subject by several gentlemen, at a supper of Count Egmont's. It was said that the King ought to have consulted them all, and the state councillors especially. The present nominees to the new episcopates were good enough, but it would be found, they said, that very improper personages would be afterwards appointed. The estates ought not to permit the execution of the scheme. In short, continued Granvelle, "there is the same kind of talk which brought about the recall of the Spanish troops." A few months later, he wrote to inform Philip that a petition against the new bishoprics was about to be drawn up by "the two lords.". They had two motives; according to the Cardinal, for this step—first, to let the King know that he could do nothing without their permission; secondly, because in the states' assembly they were then the cocks of the walk. They did not choose, therefore, that in the clerical branch of the estates any body should be above the abbots, whom they could frighten into doing whatever they chose. At the end, of the year, Granvelle again wrote to instruct his sovereign how to reply to the letter which was about to be addressed to him by the Prince of Orange and the Marquis Berghen on the subject of the bishoprics. They would tell him, he said, that the incorporation of the Brabant abbeys into the new bishoprics was contrary to the constitution of the "joyful entrance." Philip was, however, to make answer that he had consulted the universities, and those learned in the laws, and had satisfied himself that it was entirely constitutional. He was therefore advised to send his command that the Prince and Marquis should use all their influence to promote the success of the measure. Thus fortified, the King was enabled not only to deal with the petition of the nobles, but also with the deputies from the estates of Brabant, who arrived about this time at Madrid. To these envoys, who asked for the appointment of royal commissioners, with whom they might treat on the subject of the bishoprics, the abbeys, and the "joyful entrance," the King answered proudly, "that in matters which concerned the service of God, he was his own commissioner." He afterwards, accordingly, recited to them, with great accuracy, the lesson which he had privately received from the ubiquitous Cardinal. Philip was determined that no remonstrance from great nobles or from private citizens should interfere with the thorough execution of the grand scheme on which he was resolved, and of which the new bishoprics formed an important part. Opposition irritated him more and more, till his hatred of the opponents became deadly; but it, at the same time, confirmed him in his purpose. "'Tis no time to temporize," he wrote to Granvelle; "we must inflict chastisement with full rigor and severity. These rascals can only be made to do right through fear, and not always even by that means."

At the same time, the royal finances did not admit of any very active measures, at the moment, to enforce obedience to a policy which was already so bitterly opposed. A rough estimate, made in the King's own handwriting, of the resources and obligations of his exchequer, a kind of balance sheet for the, years 1560 and 1561, drawn up much in the same manner as that in which a simple individual would make a note of his income and expenditure, gave but a dismal picture of his pecuniary, condition. It served to show how intelligent a financier is despotism, and how little available are the resources of a mighty empire when regarded merely as private property, particularly when the owner chances to have the vanity of attending to all details himself: "Twenty millions of ducats," began the memorandum, "will be required to disengage my revenues. But of this," added the King, with whimsical pathos for an account-book, "we will not speak at present, as the matter is so entirely impossible." He then proceeded to enter the various items of expense which were to be met during the two years; such as so many millions due to the Fuggers (the Rothschilds of the sixteenth century), so many to merchants in Flanders, Seville, and other places, so much for Prince Doria's galleys, so much for three years' pay due to his guards, so much for his household expenditure, so much for the, tuition of Don Carlos, and Don Juan d'Austria, so much for salaries of ambassadors and councillors—mixing personal and state expenses, petty items and great loans, in one singular jumble, but arriving at a total demand upon his purse of ten million nine hundred and ninety thousand ducats.

To meet this expenditure he painfully enumerated the funds upon which he could reckon for the two years. His ordinary rents and taxes being all deeply pledged, he could only calculate from that source upon two hundred thousand ducats. The Indian revenue, so called, was nearly spent; still it might yield him four hundred and twenty thousand ducats. The quicksilver mines would produce something, but so little as hardly to require mentioning. As to the other mines, they were equally unworthy of notice, being so very uncertain, and not doing as well as they were wont. The licences accorded by the crown to carry slaves to America were put down at fifty thousand ducats for the two years. The product of the "crozada" and "cuarta," or money paid to him in small sums by individuals, with the permission of his Holiness, for the liberty of abstaining from the Church fasts, was estimated at five hundred thousand ducats. These and a few more meagre items only sufficed to stretch his income to a total of one million three hundred and thirty thousand far the two years, against an expenditure calculated at near eleven millions. "Thus, there are nine millions, less three thousand ducats, deficient," he concluded ruefully (and making a mistake in his figures in his own favor of six hundred and sixty-three thousand besides), "which I may look for in the sky, or try to raise by inventions already exhausted."

Thus, the man who owned all America and half of Europe could only raise a million ducats a year from his estates. The possessor of all Peru and Mexico could reckon on "nothing worth mentioning" from his mines, and derived a precarious income mainly from permissions granted his subjects to carry on the slave-trade and to eat meat on Fridays. This was certainly a gloomy condition of affairs for a monarch on the threshold of a war which was to outlast his own life and that of his children; a war in which the mere army expenses were to be half a million florins monthly, in which about seventy per cent. of the annual disbursements was to be regularly embezzled or appropriated by the hands through which it passed, and in which for every four men on paper, enrolled and paid for, only one, according to the average, was brought into the field.

Granvelle, on the other hand, gave his master but little consolation from the aspect of financial affairs in the provinces. He assured him that "the government was often in such embarrassment as not to know where to look for ten ducats." He complained bitterly that the states would meddle with the administration of money matters, and were slow in the granting of subsidies. The Cardinal felt especially outraged by the interference of these bodies with the disbursement of the sums which they voted. It has been seen that the states had already compelled the government to withdraw the troops, much to the regret of Granvelle. They continued, however, to be intractable on the subject of supplies. "These are very vile things," he wrote to Philip, "this authority which they assume, this audacity with which they say whatever they think proper; and these impudent conditions which they affix to every proposition for subsidies." The Cardinal protested that he had in vain attempted to convince them of their error, but that they remained perverse.

It was probably at this time that the plan for debasing the coin, suggested to Philip some time before by a skilful chemist named Malen, and always much approved of both by himself and Ruy Gomez, recurred to his mind. "Another and an extraordinary source of revenue, although perhaps not a very honorable one," wrote Suriano, "has hitherto been kept secret; and on account of differences of opinion between the King and his confessor, has been discontinued." This source of revenue, it seemed, was found in "a certain powder, of which one ounce mixed with six ounces of quicksilver would make six ounces of silver." The composition was said to stand the test of the hammer, but not of the fire. Partly in consequence of theological scruples and partly on account of opposition from the states, a project formed by the King to pay his army with this kind of silver was reluctantly abandoned. The invention, however, was so very agreeable to the King, and the inventor had received such liberal rewards, that it was supposed, according to the envoy, that in time of scarcity his Majesty would make use of such coin without reluctance.

It is necessary, before concluding this chapter, which relates the events of the years 1560 and 1561, to allude to an important affair which occupied much attention during the whole of this period. This is the celebrated marriage of the Prince of Orange with the Princess Anna of Saxony. By many superficial writers; a moving cause of the great Netherland revolt was found in the connexion of the great chieftain with this distinguished Lutheran house. One must have studied the characters and the times to very little purpose, however, to believe it possible that much influence could be exerted on the mind of William of Orange by such natures as those of Anna of Saxony, or of her uncle the Elector Augustus, surnamed "the Pious."