Under the influence of such apprehensions, the Commons denied the King's right to dispense, not indeed with all penal statutes, but with penal statutes in matters ecclesiastical, and gave him plainly to understand that, unless he renounced that right, they would grant no supply for the Dutch war. He, for a moment, showed some inclination to put everything to hazard; but he was strongly advised by Lewis to submit to necessity, and to wait for better times, when the French armies, now employed in an arduous struggle on the Continent, might be available for the purpose of suppressing discontent in England. In the Cabal itself the signs of disunion and treachery began to appear. Shaftesbury, with his proverbial sagacity, saw that a violent reaction was at hand, and that all things were tending towards a crisis resembling that of 1640. He was determined that such a crisis should not find him in the situation of Strafford. He therefore turned suddenly round, and acknowledged, in the House of Lords, that the Declaration was illegal. The King, thus deserted by his ally and by his Chancellor, yielded, cancelled the Declaration, and solemnly promised that it should never be drawn into precedent.

Even this concession was insufficient. The Commons, not content with having forced their sovereign to annul the Indulgence, next extorted his unwilling assent to a celebrated law, which continued in force down to the reign of George the Fourth. This law, known as the Test Act, provided that all persons holding any office, civil or military, should take the oath of supremacy, should subscribe a declaration against transubstantiation, and should publicly receive the sacrament according to the rites of the Church of England. The preamble expressed hostility only to the Papists: but the enacting clauses were scarcely more unfavourable to the Papists than to the rigid Puritans. The Puritans, however, terrified at the evident leaning of the court towards Popery, and encouraged by some churchmen to hope that, as soon as the Roman Catholics should have been effectually disarmed, relief would be extended to Protestant Nonconformists, made little opposition; nor could the King, who was in extreme want of money, venture to withhold his sanction. The act was passed; and the Duke of York was consequently under the necessity of resigning the great place of Lord High Admiral.

The History of England from the Accession of James II. — Part 135