Louis XIV of France, then the most powerful monarch in Europe, wished to conquer Holland, with the double object of extending his own kingdom and the power of Catholicism. He saw in Charles the tool he wanted to gain this end. With the aid of two members of the "Cabal," Charles negotiated the secret Treaty of Dover, 1670. Thereby Louis bribed the English King with a gift of 300,000 pounds to help him carry out his scheme. Thus, without the knowledge of Parliament, Charles deliberately sold himself to the French sovereign, who was plotting to destroy the political liberty and Protestant faith of Holland. In addition to the above sum, it was furthermore agreed that Louis should pay Charles a pension of 200,000 pounds a year from the date when the latter should openly avow himself a Roman Catholic. Later (1671), Charles made a sham treaty with Louis XIV in which the article about his avowing himself a Catholic was omitted in order to deceive Parliament.[1] [1] See Summary of Constitutional History in the Appendix, p. xix, S21. True to his infamous contract, Charles provoked a new war with the Dutch, but found that he needed more money to prosecute it successfully. Not knowing where to borrow, he determined to steal it. Various London merchants, bankers, and also persons of moderate means had lent to the government sums of money on promise of repayment from the taxes. A part of the national revenue amounting to about 1,300,000 pounds, a sum equal to at least $10,000,000 now, had been deposited in the exchequer, or government treasury, to meet the obligation. The King seized this money,[2] partly for his needs, but chiefly to squander on his vices, and to satisfy the insatiate demands of his favorites,--of whom a single one, the Duchess of Portsmouth, had spent 136,000 pounds within the space of a twelvemonth! The King's treacherous act caused a financial panic which shook London to its foundatyions and ruined great numbers of people. [2] "`Rob me the Exchequer, Hal,' said the King to his favorite minister in the `Cabal'; then `all went merry as a marriage bell.'"--Evelyn's "Diary." 477. More Money Schemes; Declaration of Indulgence; Test Act, 1673. By declaring war against Holland Charles had now fulfilled the first part of his secret treaty with Louis (S476), but he was afraid to undertake the second part and openly declare himself a convert to the Church of Rome. He, however, did the next thing to it, by issuing a cautiously worded Declaration of Indulgence, 1673, suspending all penal laws affecting the religious liberty of Protestant Dissenters (SS382, 472) and Roman Catholics. Under cover of this act the King could show especial favor to the Catholics. Parliament issued such a vigorous protest, however, that the King withdrew the Declaration.