the Spanish King's property, had produced their effect everywhere more signally than within the obedient Provinces. The South American specie found its way to Philip's coffers, thence to the paymasters of his troops in Flanders, and thence to the commercial centres of Holland and England. Those countries, first to feel and obey the favourable expanding impulse of the age, were moving surely and steadily on before it to greatness. Prices were rising with unexampled rapidity, the precious metals were comparatively a drug, a world-wide commerce, such as had never been dreamed of, had become an every-day concern, the arts and sciences and a most generous culture in famous schools and universities, which had been founded in the midst of tumult and bloodshed, characterized the republic, and the golden age of English poetry, which was to make the Elizabethan era famous through all time, had already begun.

In the Spanish Netherlands the newly-found treasure served to pay the only labourers required in a subjugated and almost deserted country, the pikemen of Spain and Italy, and the reiters of Germany. Prices could not sustain themselves in the face of depopulation. Where there was no security for property, no home-market, no foreign intercourse, industrial pursuits had become almost impossible. The small demand for labour had caused it, as it were, to disappear, altogether. All men had become beggars, brigands, or soldiers. A temporary reaction followed. There were no producers. Suddenly it was discovered that no corn had been planted, and that there was no harvest. A famine was the inevitable result. Prices then rose with most frightful rapidity. The veertel of rye, which in the previous year had been worth one florin at Brussels and Antwerp, rose in the winter of 1586-7 to twenty, twenty-two, and even twenty-four florins; and wheat advanced from one and one-third florin to thirty-two florins the veertel. Other articles were proportionally increased in market-value; but it is worthy of remark that mutton was quoted in the midst of the famine at nine stuyvers (a little more than ninepence sterling) the pound, and beef at fivepence, while a single cod- fish sold for twenty-two florins. Thus wheat was worth sixpence sterling the pound weight (reckoning the veertel of one hundred and twenty pounds at thirty florins), which was a penny more than the price of a pound of beef; while an ordinary fish was equal in value to one hundred and six pounds of beef. No better evidence could be given that the obedient Provinces were relapsing into barbarism, than that the only agricultural industry then practised was to allow what flocks and herds were remaining to graze at will over the ruined farms and gardens, and that their fishermen were excluded from the sea.

The evil cured itself, however, and, before the expiration of another year, prices were again at their previous level. The land was sufficiently cultivated to furnish the necessaries of life for a diminishing population, and the supply of labour was more than enough, for the languishing demand. Wheat was again at tenpence the bushel, and other commodities valued in like proportion, and far below the market- prices in Holland and England.

On the other, hand, the prosperity of the republic was rapidly increasing. Notwithstanding the war, which had beer raging for a terrible quarter. of a century without any interruption, population was increasing, property rapidly advancing in value, labour in active demand. Famine was impossible to a state which commanded the ocean. No corn grew in Holland and Zeeland, but their ports were the granary of the world. The fisheries were a mine of wealth almost equal to the famous Potosi, with which the commercial world was then ringing. Their commerce with the Baltic nations was enormous. In one month eight hundred vessels left their havens for the eastern ports alone. There was also no doubt whatever—and the circumstance was a source of constant complaint and of frequent ineffective legislation—that the rebellious Provinces were driving a most profitable trade with Spain and the Spanish possessions, in spite of their revolutionary war. The mines of Peru and Mexico were as fertile for the Hollanders and Zeelanders as for the Spaniards themselves. The war paid for the war, one hundred large frigates were constantly cruising along the coasts to protect the fast-growing traffic, and an army of twenty thousand foot soldiers and two thousand cavalry were maintained on land. There were more ships and sailors at that moment in Holland and Zeeland than in the whole kingdom of England.

While the sea-ports were thus rapidly increasing in importance, the towns in the interior were advancing as steadily. The woollen manufacture, the tapestry, the embroideries of Gelderland, and Friesland, and Overyssel, were becoming as famous as had been those of Tournay, Ypres, Brussels, and Valenciennes. The emigration from the obedient Provinces and from other countries was very great. It was difficult to obtain lodgings in the principal cities; new houses, new streets, new towns, were rising every day. The single Province of Holland furnished regularly, for war- expenses alone, two millions of florins (two hundred thousand pounds) a year, besides frequent extraordinary grants for the same purpose, yet the burthen imposed upon the vigorous young commonwealth seemed only to make it the more elastic. "The coming generations may see," says a contemporary historian, "the fortifications erected at that epoch in the cities, the costly and magnificent havens, the docks, the great extension of the cities; for truly the war had become a great benediction to the inhabitants." Such a prosperous commonwealth as this was not a prize to be lightly thrown away. There is no doubt whatever that a large majority of the inhabitants, and of the States by whom the people were represented, ardently and affectionately desired to be annexed to the English crown. Leicester had become unpopular, but Elizabeth was adored, and there was nothing unreasonable in the desire entertained by the Provinces of retaining their ancient constitutions, and of transferring their allegiance to the English Queen.

But the English Queen could not resolve to take the step. Although the great tragedy which was swiftly approaching its inevitable catastrophe, the execution of the Scottish Queen, was to make peace with Philip impossible—even if it were imaginable before—Elizabeth, during the year 1587, was earnestly bent on peace. This will be made manifest in subsequent pages, by an examination of the secret correspondence of the court. Her most sagacious statesmen disapproved her course, opposed it, and were often overruled, although never convinced; for her imperious will would have its way.

The States-General loathed the very name of peace with Spain. The people loathed it. All knew that peace with Spain meant the exchange of a thriving prosperous commonwealth, with freedom of religion, constitutional liberty, and self-government, for provincial subjection to the inquisition and to despotism: To dream of any concession from Philip on the religious point was ridiculous. There was a mirror ever held up before their eyes by the obedient Provinces, in which they might see their own image, should, they too return to obedience. And there was never a pretence, on the part of any honest adviser of Queen Elizabeth in the Netherlands, whether Englishman or Hollander, that the idea of peace- negotiation could be tolerated for a moment by States or people. Yet the sum of the Queen's policy, for the year 1587, may be summed up in one word—peace; peace for the Provinces, peace for herself, with their implacable enemy.

In France, during the same year of expectation, we shall see the long prologue to the tragic and memorable 1588 slowly enacting; the same triangular contest between the three Henrys and their partizans still proceeding. We shall see the