Concurrently with these new developments, Maximilian forged other weapons against the reforming oligarchy. So long as he possessed but a purely personal authority, he was powerless against the new system. He therefore resolved to start counter-organisations, emanating from the royal prerogative, which might be taken into account against those established by the Estates at the expense of his supreme authority. Besides this general motive, he found a particular object for such action in the condition of his Austrian territories, which were as disunited and disorderly as feudal States were ever wont to be. He had already begun to combine the ordered administration of his hereditary lands with a rival imperial system that sprang from the royal initiative. The first great step was Maximilian’s Hofrathsordnung of 1497. Since the ancient Hofrath of the Middle Ages had been merged in the Hammergericht of Frederick III, which had in its turn been superseded by the Reichskammergericht of the reformers, there was no royal Court adequate to support and represent the Crown either in the Empire or the hereditary lands of the House of Austria. Maximilian now set up a permanent Aulic Council (Hofrath), competent to deal with “all and every business that can flow in from the Empire, Christendom at large, or the King’s hereditary principalities.” This body was to follow the royal Court, was to be appointed by the King, and was to decide on all matters by a majority. It was not only a High Court of Justice, exercising concurrent jurisdiction with the Reichskammergerwht. It was also a supreme administrative body. It was to stand to the Empire and the Estates as the Concilium Ordinarium of the late medieval English Kings stood to England and the English Parliament. Next year, Maximilian further improved his executive government. The Hofkammerordnung of 1498 set up a separate financial administration, dependent on the Emperor, and subordinated also to the Aulic Council, which heard appeals from its decisions. This body, which was to sit at Innsbruck, was to centralise the financial machinery of Empire and hereditary dominions alike under four Treasurers, one for the Empire, one for Burgundy, and two for Austria. About the same date the Hofkanzkiordnung completed these monarchical reforms by setting up a Chancery or Office of State on modern lines and with powers such as could never be given to hereditary Chancellors like the Rhenish Archbishops. In these measures the King offered to his subjects rival guarantees for order, peace, and prosperity to those procured for them by the Diet. After the Gelnhausen meeting he proceeded still further on the same course. He set up a new Kammergerickt, consisting of judges appointed by himself, and this body actually had a short and troubled life at Ratisbon. He also talked of a new Reichsregiment, which was to be a Privy Council dependent on King alone; but this scheme never came into being.
Had Max been a great statesman, aiming at one thing at a time, this system might have been the beginning of a centralised bureaucracy that would have soon pervaded the whole Empire with monarchical ideas of administration. But he was neither persevering, nor wholehearted, nor far-seeing enough to pursue deliberately the policy of making himself a despot; and his reforms soon showed themselves to be but the temporary expedients of an ingenious but superficial and temporising waiter on events. In a few years fresh royal ordinances upset the system as easily as it had been called into being; and in practice Maximilian’s reforms were not much better carried out than those of the Diet. The Aulic Council ceased to exist, and its revival was only forced upon Maximilian by the Estates of his own dominions, which saw in a standing council of this sort a means of checking arbitrary prerogative. Max died before the renewed Aulic Council came into working order. Later, its permanent establishment was secured, and as time went on it proved a rather formidable rival to the imperial Chamber. In after ages it was found more advantageous to take suits before the Emperor’s Court than before the Court of the Empire, because justice was cheaper, quicker, and more certain in the Aulic Council than in the imperial Chamber.
Maximilian soon ceased to take much interest in reforming the Empire by royal prerogative. But he continued to busy himself with schemes for strengthening and unifying the administration of his hereditary dominions. He had long ago chased away the Hungarian conquerors of Vienna, and put an end to the division of the Austrian lands between two rival branches of the Habsburg House. The Aulic Council and the Innsbruck Chamber had a less direct bearing on the Empire than on the hereditary dominions, for the whole of which the Chamber might well have been the source of a single financial system. But Maximilian soon set up, in place of the single Hofkammer, two Chambers sitting at Vienna for Lower Austria (i.e. Austria, Carinthia, Carniola, Styria and Istria), and at Innsbruck for Upper Austria (Tyrol, Vorarlberg and East Swabia), with perhaps a third organisation for the scattered Vorlande in the Black Forest and Elsass. In 1501 followed an elaborate plan of administrative reform for Lower Austria, which established six executive, judicial, and financial bodies at Linz, Vienna, and Wiener Neustadt. These are the first signs of a reaction from Maximilian’s centralising policy which became stronger towards the end of his reign. It is hard to determine how far this proceeded from his instability, and how far from the pressure of the local Estates of the Austrian dominions to which his financial embarrassments ever made him peculiarly liable. In the end, however, it was the Estates that took the lead, in Austria as in the Empire. The meeting at Innsbruck in 1518, famous in Austrian history, of deputations from the various Landtage of the hereditary lands, is justly regarded as the first establishment of any organic unity within the Austrian dominions. Maximilian shared with the Estates the merit of convoking the meeting; and it was this body that sanctioned the scheme for the erection of a Reichshofrath, to which reference has already been made. Of the eighteen members of this Aulic Council of the Empire, five were to be presented by the Empire, nine by the various Austrian lands, and the remainder were to consist of great officials. Side by side with it a Chancery for the Empire and hereditary lands was erected, whose Chancellor was to act with the help of three secretaries, one for the Empire, one for Lower, and one for Upper Austria. Finance was once more to be reorganised, and the Innsbruck Chamber restored to something of its old position. Tribunals were instituted to hear complaints against officials; the prince’s domain was not to be alienated, and three local administrations were set up, at Bruck on the Mur for Lower Austria, at Innsbruck for Upper Austria, and at Ensisheim for the Vorlande. Maximilian’s death within a few months prevented these schemes from being carried out, and the history of the Emperor’s Austrian, as of his German policy, ends with the characteristic note of failure. Nevertheless he had truly won for himself the position of founder of the unity of the Austrian dominions. If he accomplished little for Germany, he had done much for Austria.
The soundness of the newer imperial policy of Maximilian was soon to be tested. On the death of George the Rich, Duke of Bavaria-Landshut (1504), a contest arose as to the succession. By family settlements and by the law of the Empire, the next heirs to the deceased Duke