Meanwhile, the Prince of Wales was in great difficulty. His ship was grappled by an immense Spaniard, and was so full of holes that it was in great danger of sinking. The crew were employed in baling out water, and could not make head against the Spaniards. But the Duke of Lancaster, the Prince's cousin, formerly Earl of Derby, seeing the danger, drew near, and fell on the other side of the enemy, grappling his ship to the Spaniard, with shouts of "Derby to the rescue." The ship was soon taken, and the crew were thrown overboard. The Prince and his men, deserting their own ship, embarked on board the Spaniard.

It was a hard battle for the English, as the Spanish ships were very big and strong, and the Spaniards fought with extreme bravery, and knew no fear. At last victory declared itself for the English. The Spaniards lost fourteen ships, and the others saved themselves by flight. When it was over Edward sounded his trumpets for retreat, and the fleet sailed back to the English coast, anchoring off Rye and Winchelsea. The King and the Prince landed, and the same night rode to the house where the Queen was—just two leagues distant. She was most joyful at seeing them return safely, for she had been in great anxiety all day. Her servants had watched the battle from the hills on the coast, whence they could see it well, as the weather was fine and clear, and they had seen the great strength of their enemy, and their fine large ships. So great were the rejoicings that, instead of resting after the battle, the King and his knights spent the night in revelry with the ladies, talking of arms and love. The next morning the King thanked his knights for their services, and dismissed them.

This battle was the beginning of the rivalry between the English and the Spaniards for the dominion of the seas. The hardy Spanish seamen were not in the least depressed by their defeat. Both sides, however, soon saw that the quarrel was to the interests of neither, and a truce for twenty years was concluded in London between the King of England and the maritime cities of Castile. It must be remembered that the quarrel was not at all between the King of Castile and the King of England, but only between these maritime cities and the English naval power.

Attempts had been again made at a conference at Guisnes between the envoys of France and England to change the armistice between the two countries into a permanent peace. Edward III. offered to give up his claim to the French crown, if the French king would give up his claim of homage for the English provinces in France. When the French king refused to do this, Edward determined to begin the war again.

Philip of Valois, King of France, had died in 1350, and was succeeded by his son John. John found the treasury of France already impoverished by the expenses of the war, and did not make matters better by his unwise and prodigal liberality. His easy-going temper earned for him the name of the Good, though he brought his kingdom to the very verge of ruin. He wanted money for his favourites and his pleasures, and when he had taxed the people till they could give no more, he tried to get money by debasing the coinage, that is, he caused money containing a large quantity of alloy to be made, and obliged the people to take this bad money in exchange for their good money. This and his heavy taxes brought great misery and poverty upon the people, who were still suffering from the effects of the Black Death.

The country also suffered greatly from the Free Companies who roamed about in all directions, committing robberies and every kind of crime. These Free Companies were the plague of the Middle Ages. They were bands of mercenary soldiers ready to fight for any one who would pay them, and when in intervals of peace they were dismissed from service they spent the time in plunder, in defiance of all laws and government. Froissart tells us that, in the year 1351, there was the greatest scarcity of provisions ever known in the memory of man, all over the kingdom of France. But in spite of the sufferings of his people, King John was eager for war and anxious to wash out the stain left on the French arms by the battle of Cressy. Edward was equally ready; even during the years when negotiations for peace had been going on, the truce had not really been observed, and both French and English had made many aggressions upon the enemy's country.

When in 1354 the Congress at Guisnes broke up, having accomplished nothing, Edward began to hasten his preparations for a new invasion of France. He had gained a new and important ally against John in the person of Charles, King of Navarre. This man was the evil genius of France during the years that followed. His crimes and unscrupulous ambition gained for him the surname of the Bad. He was one of the most powerful vassals of France, as he had inherited the earldom of Normandy and Evreux. To secure his friendship, King John had given him his daughter in marriage. But Charles soon incurred the hatred of John by murdering the king's favourite and chief counsellor. He had to fly from court, and in his absence John invaded Normandy and took some of his fortresses. Charles determined to revenge this injury by aiding Edward III. against the King of France. He promised to give the English king possession of several strong fortresses in Normandy, so that he might land his troops there, and be able to advance to Paris in safety. At the same time Edward received a visit from some of the Gascon nobles, who came to ask him to send his son to lead them against the French. A great invasion of France by three separate armies was therefore planned. One, under the Black Prince, was to land at Bordeaux; a second, under the Duke of Lancaster, was to go and aid the Countess de Montfort in Britany; and a third, under Edward himself, was to invade Normandy.

Edward III. took a proud army with him to France; but he did not do much. His ally, Charles of Navarre, made peace with John, so that Edward was obliged to change his plans and land at Calais instead of Cherbourg. John was wise enough to give Edward no chance of a battle, whilst he urged upon the Scots to invade England in the absence of its king. News was brought to Edward in France that the Scots had crossed the border and re-taken Berwick. He was obliged to return to resist them, and punished their inroad by invading Scotland, and spreading such destruction wherever he went, that the Scots long spoke of the time of this invasion as "Burnt Candlemas."