The first acts of the new sovereign were calculated to confirm the expectations of Catholic liberty thus entertained. He was anxious to make an immediate and lasting peace with Spain; refused to receive a special embassy from the Hollanders; his ambassador at Paris was known to be on terms of intimacy with the Pope's Nuncio; and although personally he assumed the tone of an Anglican Churchman, on crossing the border he had invited leading Catholics to his Court, and conferred the honour of Knighthood on some of their number. The imprudent demonstrations in the Irish towns were easily quieted, and no immediate notice was taken of their leaders. In May, 1603, Mountjoy, on whom James had conferred the higher rank of Lord Lieutenant, leaving Carew as Lord Deputy, proceeded to England, accompanied by O'Neil, Roderick O'Donnell, Maguire, and other Irish gentlemen. The veteran Tyrone, now past threescore, though hooted by the London rabble, was graciously received in that court, with which he had been familiar forty years before. He was at once confirmed in his title, the Earldom of Tyrconnell was created for O'Donnell, and the Lordship of Enniskillen for Maguire. Mountjoy, created Earl of Devonshire, retained the title of Lord Lieutenant, with permission to reside in England, and was rewarded by the appointment of Master of the Ordnance and Warden of the New Forest, with an ample pension from the Crown to him and his heirs for ever, the grant of the county of Lecale (Down), and the estate of Kingston Hall, in Dorsetshire, He survived but three short years to enjoy all these riches and honours; at the age of 44, wasted with dissipation and domestic troubles, he passed to his final account.
The necessity of conciliating the Catholic party in England, of maintaining peace in Ireland, and prosecuting the Spanish negotiations, not less, perhaps, than his own original bias, led James to deal favourably with the Catholics at first. But having attempted to enforce the new Anglican Canons, adopted in 1604, against the Puritans, that party retaliated by raising against him the cry of favouring the Papists. This cry alarmed the King, who had always before his eyes the fear of Presbyterianism, and he accordingly made a speech in the Star Chamber, declaring his utter detestation of Popery, and published a proclamation banishing all Catholic missionaries from the country. All magistrates were instructed to enforce the penal laws with rigour, and an elaborate spy system for the discovery of concealed recusants was set on foot. This reign of treachery and terror drove a few desperate men into the gunpowder plot of the following year, and rendered it difficult, if not impossible, for the King to return to the policy of toleration, with which, to do him justice, he seems to have set out from Scotland.