Along with these criticisms within the Church, a number of heretical movements had taken hold in western Europe. Among these were the Cathars. They were dualists; their beliefs were greatly influenced by Zorastrianism and Gnosticism. Theirs was an elitist faith, with a few, known as "pure souls" or parfaits (these were ascetics who did not marry & secluded themselves for the most part), along with a large body of laymen or croyants, who were permitted to marry & live in the world. By the early 13th century, Catharism had spread from eastern Europe (it may have first appeared in modern Bulgaria, or perhaps in the Byzantine Empire) into southern France, where the Cathars were known as "Albigensians," for the town of Albi which was a hub of Cathar activity. The Cathars were a threat to the Church, since they did not accept its authority or doctrine. Because they had become very numerous, & influential, in the southern French district of Languedoc, Pope Innocent III called a Crusade against them. Within a few decades the Albigensians were wiped out.
It's important to note a few facts on this action. This was by no means a "call to revolt" or anything of that sort. It wasn't uncommon for the faculty or students to post notices declaring a line of argument, as an invitation to debate an issue.
Now, indulgences became a primary issue for Luther, since they flew in the face of the nature of salvation, at least as he understood it. An indulgence was an extra-sacramental declaration of absolution of sin. In other words, they were a means to be absolved of sin, outside of the sacrament of Confession. While the concept behind absolution bothered Luther (he felt that salvation was a matter of faith & the grace of God, not influenced in any way by any earthly agent such as the clergy or the Church), what had bothered him most was that they were being sold, & not granted for merit. In addition, some of the indulgences he had seen promised absolution of future sin, which the Church has since acknowledged is not permissible.
Beyond the invitation to debate indulgences within the University of Wittenberg, though, Luther sent a copy to his archbishop, inviting him to review the matter. His "95 Theses" did stir quite a bit of academic debate, in Wittenberg & other German universities & academies. They also came to the attention of the Pope. At first, however, they were taken in the spirit they were offered — as invitations to debate, & nothing more.
Within a couple of years, however, Luther became convinced of the correctness of his position & considered indulgences to be a fraud against the faithful. He had swayed a number of academics & clergy to his way of thinking, & became more than just a debater arguing a single doctrinal issue.
In 1520, Luther released three longer doctrinal treatises, which were indictments of Church teaching. Shortly afterward, Luther was condemned as a heretic, in the Edict of Worms. He had to go into hiding, periodically, after this.
Among the reforms that Luther called for, was a change from central (i.e. papal) control of Church finances, to national (i.e. heads of state) control. He felt that centralized control of finances by the Pope & his agents was a corrupting influence, one that had led to the outrage of the sale of indulgences. By advocating state control of Church finances, he hoped that funds would stay closer to home, & with fewer "hands in the till," if you will, opportunities for corruption would be reduced.
Among Luther's followers & associates was Phillip Melanchthon, another member of the faculty at Wittenberg. About the same age as Luther, Melanchthon was, perhaps, the greater intellectual. He is very likely responsible for at least some of Luther's doctrinal refinements.
For this reason, Luther became a political lightning-rod. Many German princes signed on to his reforms, hoping to institute them, thereby seizing control of Church assets within their realms. Eventually the need to keep him in hiding was eliminated, since he was under the protection of powerful lords. They advocated for him, far & wide. By 1530, many of these princes had signed the "Augsburg Confession," expressing their belief in the new doctrine & putting their stamp of approval on it. Melanchthon had authored the "Confession," tailoring its content so as to satisfy as many heads of state as possible, & minimizing the grounds upon which the Church might go after them.
By this time, also, Luther had done a number of things. He had translated the Bible into the vernacular German, thus allowing laymen access to the Bible. He also composed a reformed Christian catechism, & devised a Mass (compliant with the new catechism) in vernacular German — again, so that the common folk could be involved. This became a common theme late in his career as a reformer — the notion of salvation, & therefore worship, as an individual, personal thing, rather than a communal or institutional endeavor.
By the middle of the 16th century, John Calvin, a reformer from England, had arrived in Genoa, & swayed most of the city to his own ideas. He advocated a return to the Church of the first century — the Church as described in Acts of the Apostles, & believed the Catholic Church was not in accordance with the New Testament. Among his teachings was the concept of predestination — that the fate of each soul has been ordained by God in advance. Those lucky few who are to be saved by the grace of God, the "Elect," could not fall from grace; while the "Reprobates," or those chosen for eternal damnation, could not avoid that. Calvinism became a significant force in subsequent Protestant history.
A new mendicant order, the Jesuits, was founded, with the goal of seeing to it that authentic Catholic doctrine was taught throughout Europe. The Reformation had resulted partly from the fact that many clergy had deviated from "accepted" Church teaching, & these divergences had been tolerated. The ability of the "quiet reformers" such as Wyclif, Hus, Erasmus, & Ockham, to preach divergent doctrine, with simply a wink from the local Church hierarchs, was ended.
For all of their efforts, however, the Church was never able to win back the Protestants, or stop them. If anything, the Counter-Reformation (particularly its nastier aspects) simply made the Church seem all the more unrighteous & convinced many "fence-sitters" that it had, indeed, gone astray from the teachings of Christ.
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