The resignation of his post by Leicester (April, 1588) may be taken as the date at which the history of the United Netherlands as a self-governing State really begins. The treaty with England still subsisted by the terms of which the Commander of the English auxiliary troops with two colleagues had seats in the Council of State, but the Council of State ceased ere long to have any but executive functions. The conduct of affairs affecting the whole Union was vested in the States-General as representing the States of the seven sovereign provinces from which its authority was derived. A more cumbrous system of government than that under which the United Provinces were now to develop rapidly into a powerful and flourishing State, probably never existed. That it was workable was due to two facts. The voices of the provinces were nominally of equal weight in the States-General, in reality that of Holland was dominant. Holland contributed 60 per cent. of the general expenses and contained about one-half of the entire population of the Union. With Zeeland she furnished almost the whole of the navy and was already becoming one of the most thriving centres of commerce in the world. At this time the influence of an exceptionally able statesman, John van Oldenbarneveldt, who filled the office of Advocate of Holland, was supreme in the States of that province, and as their representative and spokesman he was able to exercise an authority in the States-General which placed for thirty years in his hands the general administration of the country and the control of foreign affairs. By his side stood Maurice of Nassau, respected and honoured as the son of William the Silent, wielding as Captain and Admiral-General authority over all the armed forces of the Republic, and exercising as Stadholder of five provinces large executive powers. A consummate general but no politician, Maurice was content to leave the business of administration and the conduct of diplomacy in the hands of the statesman who had been his father's friend. Thus by the efforts of these two men, each eminent in his separate sphere, the youthful Republic, despite the inherent weaknesses of a confederacy so loosely compacted as that of the United Provinces, was able to carry out a wise and consistent foreign policy, to defend its borders, and meanwhile to thrive and flourish.
The relations between England and the States required the most careful handling during the whole of the period that intervened between the return of Leicester and the death of Elizabeth. The assistance given by the English Queen had not been without a return: it had been fully repaid by the services rendered by the Dutch fleet during the spring and summer of 1588 in blockading the ports in which lay the transports collected by the Duke of Parma for the invasion of England. When the Armada entered the Channel, Parma with his splendid veteran army was thus compelled to remain a helpless spectator of events, unable to take any part in promoting the success of the great enterprise which Philip had been so long preparing. But Elizabeth had been piqued by the opposition that Leicester had encountered, and by the evident determination of the States, under the leadership of Holland, not to permit any interference on the part of the representative of a foreign power with their provincial rights and privileges. She did not withdraw her help, but it was given from motives of pure self-interest rather than from any love for the cause she was supporting, and in a huckstering spirit. With her it was a question of give and take, and the military successes of Maurice, accompanied as they were by the rapid growth of commercial prosperity in Holland and Zeeland, only encouraged her to drive a harder bargain in her negotiations and to press for repayment of the loans she had advanced.
In these circumstances friction in the relations between England and the Republic was at times inevitable, but the community of interests was so strong that friendly co-operation never ceased. An English contingent took part in the campaigns of Maurice; a powerful Dutch squadron sailed with the fleet of Essex to the sack of Cadiz in 1595. The conclusion of peace between France and Spain in May, 1598, brought about a fresh treaty between England and the United Provinces, the terms of which point clearly to the great change which had taken place in the relative position of the two States since the time of Leicester's mission. The Dutch were now in a position to promise the repayment of their debt to Elizabeth by equal annual instalments2 and to undertake in case of a Spanish attack upon England to come to the assistance of their allies with thirty ships of war and a force of 5,000 infantry and five cornets of cavalry. On the other hand, only one Englishman henceforth was to have a seat upon the Council of State, and the English auxiliary troops in the Netherlands were transferred to the service of the States as their paymasters and were required to take an oath of allegiance to them. This English brigade in the Dutch service, now first formed, was to have a long and honourable career. It was speedily to prove its worth and gain immortal fame by the share that it took in winning the great victory of Nieuwport (July 2, 1600), and in the heroic defence of Ostend (1601-4).
Such was the state of things when James I ascended the English throne. From him the Netherlands could hope for little active aid. The chief aim of James's policy from the first was to live on friendly terms with Spain, and in 1604 he concluded a treaty of peace with Philip III and with the Archdukes, as sovereigns of the Netherlands. His attitude to the United Provinces was not indeed unfriendly. He still retained the cautionary towns, as a pledge for the debt, and his representative sat in the Council of State, but as one of the conditions of peace he promised to lend no assistance to the Dutch. The privilege of recruiting in England for the regiments in their service was not withdrawn, but in return a like privilege was extended to the Spaniards. Thus there were occasions on which Englishmen were found fighting against one another on opposite sides. The Court of Madrid on their part, exhausted by the long and costly struggle, were already in 1606 making tentative proposals to the rebel provinces for the conclusion of a peace or truce, and meanwhile spared no efforts to prejudice the mind of James against a people for whose cause as a stanch Protestant it was feared he might have secret leanings, and at the same time to secure his benevolent support in the coming negotiations. The arguments that were used and their effect upon the King are well summed up in the words of the keen-eyed Venetian Ambassador, Nicolò Molin, who in 1607 thus reports: —
'The Spaniards are ceaselessly urging upon the King that for his own interests he ought to use his utmost endeavours in this negotiation in order to bring it to some conclusion, since by continuance of the war the Dutch might come to make themselves masters of those seas. Having their fleets ordinarily of a hundred or more ships, and these widely scattered in different places, they can thus say, and with truth, that they are masters of those seas for the possession of which the ancient kings of England have made very long and very costly wars against the princes of Europe. The King knows all this to be true, but is likewise of opinion that at a single nod of his the Dutch would yield to him all that dominion that they have gained; which without doubt would follow so long as the war with the Spaniards lasted, since they are not able at one and the same time to contend with two of the greatest princes of Christendom. But if with time that ripens affairs peace should be effected between them and the Crown of Spain, I do not know if they would be so ready to yield as the King of England promises himself; since just as this profession of the sea is manifestly more and more on the wane in England, so more and more is it increasing and acquiring force and vigour among the Dutch.'
The perspicacity of this review of the situation was completely justified by the events. On April 9, 1609, after prolonged and acrimonious negotiations, a treaty for a truce of twelve years between the belligerents was signed, but on conditions imposed by the Dutch. To the Spaniards the terrible drain on their resources made a respite from war a matter not of choice, but of necessity. To obtain it they had to treat with the United Provinces 'as if they were an independent State', and, worst of all, they had by a secret clause to concede liberty of trading in the Indies. From this moment the relations of the States with England were sensibly changed. The attitude of King James had hitherto been a mixture of condescension and aloofness, and he had not troubled himself to consider seriously the question of Dutch rivalry upon the seas and in commerce, which had so profoundly impressed the Venetian envoy.