Peace deliberations in Spain—Unpopularity of the project— Disaffection of the courtiers—Complaints against Spinola— Conference of the Catholic party—Position of Henry IV. towards the republic—State of France Further peace negotiations—Desire of King James of England for the restoration of the States to Spain—Arrival of the French commissioners President Jeannin before the States- General—Dangers of a truce with Spain—Dutch legation to England— Arrival of Lewis Verreyken at the Hague with Philip's ratification— Rejection of the Spanish treaty—Withdrawal of the Dutch fleet from the Peninsula—The peace project denounced by the party of Prince Maurice—Opposition of Maurice to the plans of Barneveld—Amended ratification presented to the States-General—Discussion of the conditions—Determination to conclude a peace—Indian trade— Exploits of Admiral Matelieff in the Malay peninsula—He lays siege to Malacca—Victory over the Spanish fleet—Endeavour to open a trade with China—Return of Matelieff to Holland.

The Marquis Spinola had informed the Spanish Government that if 300,000 dollars a month could be furnished, the war might be continued, but that otherwise it would be better to treat upon the basis of 'uti possidetis,' and according to the terms proposed by the States-General. He had further intimated his opinion that, instead of waiting for the king's consent, it more comported with the king's dignity for the archdukes to enter into negotiations, to make a preliminary and brief armistice with the enemy, and then to solicit the royal approval of what had been done.

In reply, the king—that is to say the man who thought, wrote, and signed in behalf of the king—had plaintively observed that among evils the vulgar rule was to submit to the least. Although, therefore, to grant to the Netherland rebels not only peace and liberty, but to concede to them whatever they had obtained by violence and the most abominable outrages, was the worst possible example to all princes; yet as the enormous sum necessary for carrying on the war was not to be had, even by attempting to scrape it together from every corner of the earth, he agreed with the opinion of the archdukes that it was better to put an end to this eternal and exhausting war by peace or truce, even under severe conditions. That the business had thus far proceeded without consulting him, was publicly known, and he expressed approval of the present movements towards a peace or a long truce, assuring Spinola that such a result would be as grateful to him as if the war had been brought to a successful issue.

When the Marquis sent formal notice of the armistice to Spain there were many complaints at court. Men said that the measure was beneath the king's dignity, and contrary to his interests. It was a cessation of arms under iniquitous conditions, accorded to a people formerly subject and now rebellious. Such a truce was more fatal than any conflict, than any amount of slaughter. During this long and dreadful war, the king had suffered no disaster so terrible as this, and the courtiers now declared openly that the archduke was the cause of the royal and national humiliation. Having no children, nor hope of any, he desired only to live in tranquillity and selfish indulgence, like the indolent priest that he was, not caring what detriment or dishonour might accrue to the crown after his life was over.

Thus murmured the parasites and the plunderers within the dominions of the do-nothing Philip, denouncing the first serious effort to put an end to a war which the laws of nature had proved to be hopeless on the part of Spain.

Spinola too, who had spent millions of his own money, who had plunged himself into debt and discredit, while attempting to sustain the financial reputation of the king, who had by his brilliant services in the field revived the ancient glory of the Spanish arms, and who now saw himself exposed with empty coffers to a vast mutiny, which was likely to make his future movements as paralytic as those of his immediate predecessors—Spinola, already hated because he was an Italian, because he was of a mercantile family, and because he had been successful, was now as much the object of contumely with the courtiers as with the archduke himself.

The splendid victory of Heemskerk had struck the government with dismay and diffused a panic along the coast. The mercantile fleets, destined for either India, dared not venture forth so long as the terrible Dutch cruisers, which had just annihilated a splendid Spanish fleet, commanded by a veteran of Lepanto, and under the very guns of Gibraltar, were supposed to be hovering off the Peninsula. Very naturally, therefore, there was discontent in Spain that the cessation of hostilities had not originally been arranged for sea as well as land, and men said openly at court that Spinola ought to have his head cut off for agreeing to such an armistice. Quite as reasonably, however, it was now felt to be necessary to effect as soon as possible the recall of this very inconvenient Dutch fleet from the coast of Spain.

The complaints were so incessant against Spinola that it was determined to send Don Diego d'Ybarra to Brussels, charged with a general superintendence of the royal interests in the present confused condition of affairs. He was especially instructed to convey to Spinola the most vehement reproaches in regard to the terms of the armistice, and to insist upon the cessation of naval hostilities, and the withdrawal of the cruisers.

Spinola, on his part, was exceedingly irritated that the arrangements which he had so carefully made with the archduke at Brussels should be so contumaciously assailed, and even disavowed, at Madrid. He was especially irritated that Ybarra should now be sent as his censor and overseer, and that Fuentes should have received orders to levy seven thousand troops in the Milanese for Flanders, the arrival of which reinforcements would excite suspicion, and probably break off negotiations.

He accordingly sent his private secretary Biraga, posthaste to Spain with two letters. In number one he implored his Majesty that Ybarra might not be sent to Brussels. If this request were granted, number two was to be burned. Otherwise, number two was to be delivered, and it contained a request to be relieved from all further employment in the king's service. The marquis was already feeling the same effects of success as had been experienced by Alexander Farnese, Don John of Austria, and other strenuous maintainers of the royal authority in Flanders. He was railed against, suspected, spied upon, put under guardianship, according to the good old traditions of the Spanish court. Public disgrace or secret poison might well be expected by him, as the natural guerdons of his eminent deeds.