The Prince, dissatisfied with the conduct of the cities, brought the whole subject before an assembly of the estates of Holland on the 20th October, 1574. He stated the inconveniences produced by the anomalous condition of the government. He complained that the common people had often fallen into the error that the money raised for public purposes had been levied for his benefit only, and that they had, therefore, been less willing to contribute to the taxes. As the only remedy for these evils, he tendered his resignation of all the powers with which he was clothed, so that the estates might then take the government, which they could exercise without conflict or control. For himself, he had never desired power, except as a means of being useful to his country, and he did not offer his resignation from unwillingness to stand by the cause, but from a hearty desire to save it from disputes among its friends. He was ready, now as ever, to shed the last drop of his blood to maintain the freedom of the land.

This straightforward language produced an instantaneous effect. The estates knew that they were dealing with a man whose life was governed by lofty principles, and they felt that they were in danger of losing him through their own selfishness and low ambition. They were embarrassed, for they did not like to, relinquish the authority which they had begun to relish, nor to accept the resignation of a man who was indispensable. They felt that to give up William of Orange at that time was to accept the Spanish yoke for ever. At an assembly held at Delft on the 12th of November, 1574, they accordingly requested him "to continue in his blessed government, with the council established near him," and for this end, they formally offered to him, "under the name of Governor or Regent, "absolute power, authority, and sovereign command. In particular, they conferred on him the entire control of all the ships of war, hitherto reserved to the different cities, together with the right to dispose of all prizes and all monies raised for the support of fleets. They gave him also unlimited power over the domains; they agreed that all magistracies, militia bands, guilds, and communities, should make solemn oath to contribute taxes and to receive garrisons, exactly as the Prince, with his council, should ordain; but they made it a condition that the estates should be convened and consulted upon requests, impositions, and upon all changes in the governing body. It was also stipulated that the judges of the supreme court and of the exchequer, with other high officers, should be appointed by and with the consent of the estates.

The Prince expressed himself willing to accept the government upon these terms. He, however, demanded an allowance of forty-five thousand florins monthly for the army expenses and other current outlays. Here, however, the estates refused their consent. In a mercantile spirit, unworthy the occasion and the man with whom they were dealing, they endeavoured to chaffer where they should have been only too willing to comply, and they attempted to reduce the reasonable demand of the Prince to thirty thousand florins. The Prince, who had poured out his own wealth so lavishly in the cause—who, together with his brothers, particularly the generous John of Nassau, had contributed all which they could raise by mortgage, sales of jewellery and furniture, and by extensive loans, subjecting themselves to constant embarrassment, and almost to penury, felt himself outraged by the paltriness of this conduct. He expressed his indignation, and denounced the niggardliness of the estates in the strongest language, and declared that he would rather leave the country for ever, with the maintenance of his own honor, than accept the government upon such disgraceful terms. The estates, disturbed by his vehemence, and struck with its justice, instantly, and without further deliberation, consented to his demand. They granted the forty-five thousand florins monthly, and the Prince assumed the government, thus remodelled.

During the autumn and early winter of the year 1574, the Emperor Maximilian had been actively exerting himself to bring about a pacification of the Netherlands. He was certainly sincere, for an excellent reason. "The Emperor maintains," said Saint Goard, French ambassador at Madrid, "that if peace is not made with the Beggars, the Empire will depart from the house of Austria, and that such is the determination of the electors." On the other hand, if Philip were not weary of the war, at any rate his means for carrying it on were diminishing daily. Requesens could raise no money in the Netherlands; his secretary wrote to Spain, that the exchequer was at its last gasp, and the cabinet of Madrid was at its wits' end, and almost incapable of raising ways and means. The peace party was obtaining the upper hand; the fierce policy of Alva regarded with increasing disfavor. "The people here," wrote Saint Goard from Madrid, "are completely desperate, whatever pains they take to put a good face on the matter. They desire most earnestly to treat, without losing their character." It seemed, nevertheless, impossible for Philip to bend his neck. The hope of wearing the Imperial crown had alone made his bigotry feasible. To less potent influences it was adamant; and even now, with an impoverished exchequer, and, after seven years of unsuccessful warfare, his purpose was not less rigid than at first. "The Hollanders demand liberty of conscience," said Saint Goard, "to which the King will never consent, or I am much mistaken."

As for Orange, he was sincerely in favor of peace—but not a dishonorable peace, in which should be renounced all the objects of the war. He was far from sanguine on the subject, for he read the signs of the times and the character of Philip too accurately to believe much more in the success of the present than in that of the past efforts of Maximilian. He was pleased that his brother-in-law, Count Schwartzburg, had been selected as the Emperor's agent in the affair, but expressed his doubts whether much good would come of the proposed negotiations. Remembering the many traps which in times past had been set by Philip and his father, he feared that the present transaction might likewise prove a snare. "We have not forgotten the words I 'ewig' and 'einig' in the treaty with Landgrave Philip," he wrote; "at the same time we beg to assure his Imperial Majesty that we desire nothing more than a good peace, tending to the glory of God, the service of the King of Spain, and the prosperity of his subjects."

This was his language to his brother, in a letter which was meant to be shown to the Emperor. In another, written on the same day, he explained himself with more clearness, and stated his distrust with more energy. There were no papists left, except a few ecclesiastics, he said; so much had the number of the Reformers been augmented, through the singular grace of God. It was out of the question to suppose, therefore, that a measure, dooming all who were not Catholics to exile, could be entertained. None would change their religion, and none would consent, voluntarily, to abandon for ever their homes, friends, and property. "Such a peace," he said, "would be poor and pitiable indeed."

These, then, were the sentiments of the party now about to negotiate. The mediator was anxious for a settlement, because the interests of the Imperial house required it. The King of Spain was desirous of peace, but was unwilling to concede a hair. The Prince of Orange was equally anxious to terminate the war, but was determined not to abandon the objects for which it had been undertaken. A favorable result, therefore, seemed hardly possible. A whole people claimed the liberty to stay at home and practice the Protestant religion, while their King asserted the right to banish them for ever, or to burn them if they remained. The parties seemed too far apart to be brought together by the most elastic compromise. The Prince addressed an earnest appeal to the assembly of Holland, then in session at Dort, reminding them that, although peace was desirable, it might be more dangerous than war, and entreating them, therefore, to conclude no treaty which should be inconsistent with the privileges of the country and their duty to God.

It was now resolved that all the votes of the assembly should consist of five: one for the nobles and large cities of Holland, one for the estates of Zealand, one for the small cities of Holland, one for the cities Bommel and Buren, and the fifth for William of Orange. The Prince thus effectually held in his hands three votes: his own, that of the small cities, which through his means only had been admitted to the assembly, and thirdly, that of Buren, the capital of his son's earldom. He thus exercised a controlling influence over the coming deliberations. The ten commissioners, who were appointed by the estates for the peace negotiations, were all his friends. Among them were Saint Aldegonde, Paul Buis, Charles Boisot, and Doctor Junius. The plenipotentiaries of the Spanish government were Leoninus, the Seigneur de Rassinghem, Cornelius Suis, and Arnold Sasbout.

The proceedings were opened at Breda upon the 3rd of March, 1575. The royal commissioners took the initiative, requesting to be informed what complaints the estates had to make, and offering to remove, if possible, all grievances which they might be suffering. The states' commissioners replied that they desired nothing, in the first place, but an answer to the petition which they had already presented to the King. This was the paper placed in the hands of Saint Aldegonde during the informal negotiations of the preceding year. An answer was accordingly given, but couched in such vague and general language as to be quite without meaning. The estates then demanded a categorical reply to the two principal demands in the petition, namely, the departure of the foreign troops and the assembling of the states-general. They, were asked what they understood by foreigners and by the assembly of states-general. They replied that by foreigners they meant those who were not natives, and particularly the Spaniards. By the estates-general they meant the same body before which, in 1555, Charles had resigned his sovereignty to Philip. The royal commissioners made an extremely unsatisfactory answer, concluding with a request that all cities, fortresses, and castles, then in the power of the estates, together with all their artillery and vessels of war, should be delivered to the King. The Roman Catholic worship, it was also distinctly stated, was to be re-established at once exclusively throughout the Netherlands; those of the Reformed religion receiving permission, for that time only, to convert their property into cash within a certain time, and to depart the country.

Orange and the estates made answer on the 21st March. It could not be called hard, they said, to require the withdrawal of the Spanish troops, for this had been granted in 1559, for less imperious reasons. The estates had, indeed, themselves made use of foreigners, but those foreigners had never been allowed to participate in the government. With regard to the assembly of the states-general, that body had always enjoyed the right of advising with the Sovereign on the condition of the country, and on general measures of government. Now it was only thought necessary to summon them, in order that they might give their consent to the King's "requests." Touching the delivery of cities and citadels, artillery and ships, the proposition was, pronounced to resemble that made by the wolves to the sheep, in the fable—that the dogs should be delivered up, as a preliminary to a lasting peace. It was unreasonable to request the Hollanders to abandon their religion or their country. The reproach of heresy was unjust, for they still held to the Catholic Apostolic Church, wishing only to purify, it of its abuses. Moreover, it was certainly more cruel to expel a whole population than to dismiss three or four thousand Spaniards who for seven long years had been eating their fill at the expense of the provinces. It would be impossible for the exiles to dispose of their property, for all would, by the proposed measure, be sellers, while there would be no purchasers.