Gregory died in exile at Salerno, Henry died deposed by his rebellious son; and the question of lay investiture still remained unsettled. More deeds of violence were done, more oaths broken, more lives taken; at last an agreement was reached and the long contest closed. Papacy and Empire made a treaty of peace, known as the Concordat of Worms (1122). The Emperor renounced all claim to invest bishops with ring and staff, and recognized the freedom of election and of ordination of the clergy, thus giving up all claim to appoint bishops and other ecclesiastical dignitaries. The Pope agreed that the election of bishops should take place in presence of the Emperor or his representative, and that bishops should receive their fiefs in a separate ceremony, by touch of the royal sceptre, in token of holding them from the Empire. This compromise, which seems absurdly simple, as settled questions often do, was a final adjustment of the immediate quarrel between Empire and Papacy, but left the larger matter of mastery still to be fought out. FOOTNOTES: [9] _Select Mediaeval Documents_, Shailer Mathews, translated. CHAPTER XI TRADE AGAINST FEUDALISM (1152-1190) The last chapter dealt with the struggle between the two great mediaeval institutions, the Empire and the Papacy. This deals with the contest between the Empire, representing the feudal system, and a new social force, the spirit of trade, represented by the Lombard cities. Naturally the Papacy joined in the fray and sided with the Lombard cities; and, before the end, all Italy was divided into two great parties designated by terms derived from Germany: Guelfs, which indicated those opposed to the Empire, and Ghibellines, which indicated friends to the Empire. But the particular issue here fought out was that between feudalism and trade, and the triumph of trade indicates the close of the Middle Ages.