The European Kings finally woke up and launched a Third Crusade later that year (led by Richard the Lionheart) in an unsuccessful attempt to recapture the Holy City and recover the True Cross. Although it was successful along the coast cities, Jerusalem was not retaken and remained in Muslim hands. A Fourth Crusade in 1202 and the Fifth Crusade in 1229 were required. In this last crusade, a treaty was made with the Muslims that Jerusalem would be placed under Christian control, but the destroyed walls or fortifications could not be rebuilt -- in effect, this meant the city could not be defended. But, at least, a victory could be claimed and the Crusaders left for home..
On their way back to Europe, infuriated at what was viewed as a traitorous act by the Byzantine Emperor, the Crusaders supported by a Templar army captured and looted Constantinople, installing a Templar supporter, the Count of Flanders, as the new Emperor. This act effectively ended the Greek Byzantium Empire and opened the door to the Turks, who within a few generations, would capture the city and lead to over 400 years of rule of the Mediterranean by the Ottoman Empire.
By the mid 1200s, the Templars were at the pinnacle of their power. At their extensive eight square block Priory compound in the center of Paris, they hosted Henry III of England and arbitrated the settlement of the differences between the English King and Louis IX of France, which resulted in the Treaty of Paris in 1259. At this time, there were over 900 Templar priories covering every capital throughout Europe and in many smaller cities. Outside the cities, Templar land holdings were extensive, giving the order a yearly income that rivaled that of any Kingdom.
A sizable Templar fleet plied trade routes in the Mediterranean between France and Templar holdings in Crete, Cyprus, Asia Minor and Palestine flying the Templar naval flag -- a black flag with a white skull and cross. Needed to supply the multitude of Templar outposts in the Mideast, the Templars needed cargo to fill the ships on the return journey. So, they scoured the mid-east for likely products. One such product was made by boiling sugar in crystalline lumps, called al-Kandiq, which the Templars started exporting to Europe and which Europeans then called candy. Another was a thin fabric that was used to cover the face of Muslim women. The Templars had discovered that, if made in large quantities which did not have much weight, it could make tents which shielded them from the heat of the sun, but let in the breeze and diffused light. This came from a city called Gaza and was named by the Europeans as gauze. Similarly, the Templars began exporting another fabric from the Holy Land which was called simply, "Muslim" (or muslin)
Back in Europe, and, in many areas, the Templar Knights were the most powerful military force in the area. In military matters, the Templar Knights had become legendary. They adopted many tactics learned from fighting the Saracens and Mongols (one was the ability to have the Templar cavalry "wheel" while at full gallop in a charge, changing direction suddenly on the enemy; another was the feigned retreat wherein the middle of the line collapses and retreats as in a rout encouraging the enemy to pursue spreading out his forces -- then, the rout stops and the counter-attack begins while the enemy finds he has been flanked and surrounded by hidden troops. A third was the introduction of light cavalry and the curved cavalry saber, which the Templars learned and modified from their Muslim opponents. Further, many Templar maneuvers called for lengthy training on tactics and coordinated movements -- something unknown in medieval Europe. Lastly, since the Templars would never pay ransom for a captured Knight, Templar Knights rarely surrendered, but fought to the death. (It was the custom when a battle was lost for the Knights to surrender since only the foot solders would be killed by the victors, the Knights as nobles would be held for ransom, but the Templar policy removed this option for Templar Knights).
Because of this, Templar cavalry units were often called upon by local nobility to assist in protecting them from local peasant uprisings. In England, for example, the Templars were a major part of Edward I's army when he defeated William Wallace in 1298. [Thus, on the 18th of August, 1291, the king directed the keeper of the Forest of Selkirk to deliver six stags to Brother Brian, Preceptor of the Order of Knights Templars in Scotland. - Rotuli Scotiæ vol. i. p. 3]
Because of the command structure of their order, the fact that Templar Priories spanned all of the Mediterranean and Europe, and the trust many people had in the Templars' integrity and code of honor, the Templar Priories became the world's first international banking system. An individual could deposit his gold at any Templar Priory, receive a note attesting to that fact from the Prior, and then turn in that same note for gold at any other Templar Priory. Although no interest was charged (since charging interest was a sin in the Church at that time), a donation for this service was expected. In keeping these accounts and others, the Templar treasurers devised a form of bookkeeping that was the fore-runner to our double-entry systems used today.
Additionally, during this period, the Templars were active throughout Europe funding and managed the construction of cathedrals, abbeys and churches. The Templar engineers and architects were expert at construction of large stone edifices. They had designed and built castles and fortresses through the mid-east, combining European techniques with those learned from Byzantium and Egypt. With this knowledge they now returned to Europe and with their ability and massive amounts of their funds and began the construction over 300 large cathedrals and 2,000 abbeys and smaller churches. Examples of this are the Gothic cathedrals throughout Europe that were started in the mid 12th century -- examples would be the cathedrals of Notre Dame in Paris (1163), Chartres (1194), Reims (1211) and Amiens (1221) and the famous Temple Church in London.
This Templar Church, was part of an extensive Templar compound and the headquarters of the English Templars. Much later, in the 17th Century, it was given by King James I to the lawyers’ guild for their offices since it was next to Westminster. The gift contained the single condition that they always maintain the Temple as it was in honor of the Templars. A gate at the entrance to the Temple was called the "barristre de Temple" or translated into English as "barrister of the Temple" and the lawyers who passed through the gate became known simply as "barristers" who were allowed to pass through the "bar".
In 1244, however, Jerusalem fell once more to the Muslims. A new sixth Crusade was launched in 1248, but met with disaster in a battle with the Egyptians, frustrating efforts to retake Jerusalem. A last attempt (the 7th Crusade) was launched in 1271, but failed when Louis IX died in Tunis.
Although the Templars may have not realized it, the overwhelming wealth and influence of the Templars combined with this last failed Crusade would start a chain of events that would eventually lead to their downfall 40 years later.
In 1285, Philip IV (known as Philip the Fair, because of his coloring, not his integrity) at the age of 18 became King of France. However, his grandfather (Louis IX) and father (Phillip III) has spent the country into bankruptcy and beyond. Its biggest lender over the last hundred year had been the Templars and now Phillip calculated that it would take France over 300 years to pay off their debts to the Templars. In fact, he was so poor that he had to borrow the dowry he needed to complete the capstone of the recent peace with Edward I of England-- the marriage of his daughter, Isabella, to Edward I's son, the Prince of Wales. Who did he get it from? -- the Templars, of course.
So, Phillip increased taxes throughout the land.. and implemented a tax upon the property of the church itself. Although Pope Boniface VIII had allowed Philip's grandfather the right to do this once before, the Pope did not approve of Philip's action and issued a Papal Bull in 1302, forbidding the clergy in France from honoring the tax. Philip responded by forbidding the export of any gold or silver from France, preventing the French clergy from supporting Rome. Philip, in a last effort to raise money, "salted" the coinage of the realm, reducing the amount of gold and silver in the coins.
This last devaluation caused a revolt in 1303. Mobs streamed down the Paris streets, and Philip had to retreat into the Templar compound for sanctuary. After three days, the riots faded and Philip felt safe enough to leave the compound and return to his palace, but he realized something must be done. As the King of France, he was poorer than the Templars; as the King of France, he could not even protect himself from his own citizenry and had to beg the Templars for sanctuary. He realized, in fact, that as long as the he owed the Templars so much money, as long as he could not tax their land, as long as the Templars were more feared than his own army, then he was King in name only.
