Prince of Conde, had chased into the ports of England some merchantmen coming from Spain with supplies in specie for the Spanish army in the Netherlands.  The trading ships remained in harbor, not daring to leave for their destination, while the privateers remained in a neighbouring port ready to pounce upon them should they put to sea.  The commanders of the merchant fleet complained to the Spanish ambassador in London.  The envoy laid the case before the Queen.  The Queen promised redress, and, almost as soon as the promise had been made, seized upon all the specie in the vessels, amounting to about eight hundred thousand dollars—­[1885 exchange rate]—­ and appropriated the whole to her own benefit.  The pretext for this proceeding was twofold.  In the first place, she assured the ambassador that she had taken the money into her possession in order that it might be kept safe for her royal brother of Spain.  In the second place, she affirmed that the money did not belong to the Spanish government at all, but that it was the property of certain Genoese merchants, from whom, as she had a right to do, she had borrowed it for a short period.  Both these positions could hardly be correct, but either furnished an excellent reason for appropriating the funds to her own use.

The Duke of Alva being very much in want of money, was furious when informed of the circumstance.  He immediately despatched Councillor d’Assonleville with other commissioners on a special embassy to the Queen of England.  His envoys were refused an audience, and the Duke was taxed with presumption in venturing, as if be had been a sovereign, to send a legation to a crowned head.  No satisfaction was given to Alva, but a secret commissioner was despatched to Spain to discuss the subject there.  The wrath of Alva was not appeased by this contemptuous treatment.  Chagrined at the loss of his funds, and stung to the quick by a rebuke which his arrogance had merited, he resorted to a high-handed measure.  He issued a proclamation commanding the personal arrest of every Englishman within the territory of the Netherlands, and the seizure of every article of property which could be found belonging to individuals of that nation.  The Queen retaliated by measures of the same severity against Netherlanders in England.  The Duke followed up his blow by a proclamation (of March 31st, 1569), in which the grievance was detailed, and strict non-intercourse with England enjoined.  While the Queen and the Viceroy were thus exchanging blows, the real sufferers were, of course, the unfortunate Netherlanders.  Between the upper and nether millstones of Elizabeth’s rapacity and Alva’s arrogance, the poor remains of Flemish prosperity were well nigh crushed out of existence.  Proclamations and commissions followed hard upon each other, but it was not till April 1573, that the matter was definitely arranged.  Before that day arrived, the commerce of the Netherlands had suffered, at the lowest computation, a dead loss of two million florins, not a stiver of which was ever reimbursed to the sufferers by the Spanish government.