Even before the building itself was finished, the place was inaugurated by a ceremony characteristic both of Philip and his minister. On the 1st October 1632, the King paid his visit to see the preparations being made for the festival to be held in celebration of the birth of an heir to his sister the Queen of Hungary. When he approached the new royal house, he was met by Olivares, who had conferred upon himself the post of honorary Constable of the Palace, bearing upon a silver salver the gold master-keys of the Buen Retiro.[[24]] Kneeling, he handed them to the King, who, touching them with his hand, signified that the bearer should retain them; and when, later, the festivities commenced in the recently built rooms, to continue thereafter for many days, Philip and his wife fairly fell in love with the place, whose lightsome grace was a revelation to them after the dark old Alcazar.

First there was a showy cane tourney, in which the King on horseback, with Olivares at his side, led a glittering troop of riders, Philip taking part in the festivities, as the flattering poet said, "not as a king but as a most gallant skilful gentleman." This splendid show the greatest poet of his time, Lope de Vega, then rapidly sinking into the grave, celebrated in verse. "The Vega del Parnaso," dedicated to the first festival of the new palace, was an appropriate swan's song of the great dramatist, whose inexhaustible wit and invention had done so much to lead the thoughts of his countrymen to the theatrical expression of which this new fairy palace was to be the apotheosis. Afterwards there was one of the usual bull-fights; then running at the ring, with rich prizes of silver plate, of course won by the King, and afterwards a ball was held in the unfinished halls, at which, as at a modern cotillon, "perfumed purses of ducats and rich dress lengths" were given to the lady dancers.[[25]]

Baltasar Carlos

Only a few months before this, the Church of St. Geronimo had been the scene of another of those stately ceremonials which were the birthright of Spanish princes. There, upon a splendidly decked staging before the high altar, the tiny Prince Baltasar Carlos, who had been carried thither the day before, received the oaths of the Commons of Castile as heir to the throne. There were two violent altercations for precedence between nobles, even in the King's presence, before the ceremony; but all was silence as the chubby princeling, in crimson plush embroidered with gold, toddled up the nave to the staging, held in leading strings by his two uncles Carlos and Fernando; the first in a few months to sink into the grave, a silent, amiable young enigma to the last. The little Prince, we are told, carried a miniature sword and dagger covered with enamel and diamonds, and wore a black hat trimmed with bugles and diamonds, and adorned by scarlet plumes. It is to be remarked that in most of these festivities Philip himself was faithful to his love of brown for his dress; and on this occasion is described as wearing light brown velvet embroidered with gold thread, and wearing the collar of the Golden Fleece, whilst he rested his hand upon the shoulder of his gentleman-in-waiting, the Count de Galve, clad smartly in crimson satin and gold.[[26]]

Financial exactions

In the meanwhile, over the tinkling of all this courtly gaiety, there echoed the distant rumbling of the storm. Mr. Arthur Hopton, the new English ambassador, left in Madrid to look after English commercial interests, and to push the eternal question of the Palatinate, wrote to Lord Dorchester in February 1631: "All the Spanish Barbary garrisons are starving, but the want of corn here is so great that every grain from Andalusia is sorely wanted for Castile."[[27]] But the extravagant expenditure on the Buen Retiro and on the never-ending war had to be met somehow, and Olivares had to incur increased odium by inventing new exactions. "The Count of Olivares," continues Hopton, "being the most industrious man in his master's service, and more so in the matter of his revenue than anything else, hath made him an instrument by directing a new imposition on salt, making the King the owner of all the salt that is spent, and delivering it out at 40 reals the fanega (i.e. 1½ bushels), whilst remitting 12 per cent. on the wine and oil excise that had nine years to run. This is a pretty way of imposing taxation on the clergy and religious without the leave of the Pope."[[28]]

But the salt monopoly was much more than that, as Hopton soon found by the bitter complaints of the English shipmasters, who, now that the trade was reopened, had hoped to do a large business again with salt from Andalucia to England. Olivares replied suavely to all his remonstrances, that he wished to treat the English better than any others, but the King must have money, and he hoped the increased price of salt would not alter the new friendship. It soon turned out that the new tax was to be in addition to, and not in place of, the wine and oil excise ("the millions," as it was called); and Hopton displays almost admiration at the financial resource of Olivares.

"He means to keep the millions too, now that he has got the other voted. I think it may be truly claimed that the inventor of this project hath discovered a way to bring a greater revenue to this King's purse than Columbus did that discovered the West Indies. Aragon has not yet consented, but probably will do so, as the tax is to be imposed on strangers (i.e. those who bought Spanish salt for export). When I was last with Olivares he let fall a word that makes me think they mean to satisfy his Majesty (i.e. King Charles of England) in another way. I said it would require good consideration to instruct their ambassador what reasons to make the imposition appear to be no breach of the Article. He said: 'Doubt it not.' I said it would be fit to do it presently, for it would be better to come to his Majesty (Charles) by way of reason than complaint. He replied, 'We are providing some papers to send to the King (of England) that will not be unwelcome.'"[[29]]

What this "secret affair," as Hopton calls it, was does not appear; but doubtless it was one of Olivares' usual mystifications to keep the English complaints from being pushed too urgently, for the hosts of English shipmasters so long kept out of Spain by the war, but who were now crowding into Spanish ports to trade, were clamorous about the extortion and injustice to which they were subjected. Hopton bribed Olivares' subordinates heavily, and besieged the minister himself; but the resources of delay in Spanish diplomacy were infinite, and little redress could be obtained. Of sweet words Hopton found an abundance from Olivares, who was always ready to flatter in furtherance of his aims, and Hopton was inclined to be boastful of English prowess. "All the rest of the world must pardon me," said Olivares once to him, in answer to a bit of innocent brag, "but I hold no nation fit to fight in a royal Armada but England and Spain."[[30]]

Money, and ever more money, was Olivares' constant cry. "His time is principally taken up," says Hopton, "in arranging loans." The price of salt had been raised to 35 or 40 reals 1½ bushel for inland consumption or export, an enormous increase "which will bring an exorbitant revenue if they can enforce it in all the kingdoms. They are also decreeing a tax on all royal grants, titles, and appointments, which will also bring a vast revenue." Writing to Lord Dorchester in August 1631, Hopton mentions the excessive price of all commodities in Madrid. "I can assure your Lordship that only in regard of the value of brass money, wherein all the trade of this country is done, what was last year at 30 per cent. and upwards is not now worth 10 per cent., the charge of living here since last year is one in five increased."[[31]]