Criticism and Attempts at Reform
There were various attempts to reform the practice of granting indulgences and dispensations. The Council of Constance (1415-1418) gave Bishops the power to block the granting of excessive and arbitrary indulgences; all those who attended the council were granted indulgences to reward them for their vigilance against corruption.
The abuse continued, however, throughout Europe. By the mid 15th Century, it was possible to get dispensations and indulgences for sins which were actual crimes, such as robbery. Priests would impose fasting on the laity, then sell "Butter letter" exemptions allowing people to continue to indulge in their favorite foods. The Priests allowed themselves to 'observe' the fasts by changing their diet for the period of fasting. They would often indulge in drinking and debauchery; in fact, Priests often ran the alehouses.
Perhaps the most famous critic of indulgences was the German theologian Martin Luther. In 1517, Albert of Brandenburg sponsored a sale of indulgences across Saxony, to help pay for the construction of Saint Peter's in Rome--and also to fund Albert's own appointment as the new Archbishop of Mainz. Luther was outraged, and wrote his most famous work--his 95 Theses criticizing the practice of granting indulgences. He nailed the document to the door of the castle church in Wittenburg, sparking off the Protestant revolution known as the Reformation.
Luther stated that the Pope did not have the power to excuse people from paying the penalties for the sins they had committed--and that people certainly couldn't buy their way out of punishment, either through money or through good deeds. He questioned the idea that a sinner could buy indulgences and skip punishment which a pious believer would be expected to suffer. He also questioned the church's true motives in selling indulgences:
"Again: why does not the Pope, whose riches are at this day more ample than those of the wealthiest of the wealthy, build the one Basilica of St. Peter with his own money, rather than with that of poor believers?"
As the Reformation continued, the Catholic Church attempted to respond. At the Council of Trent (1545-1563) the participants refused to make any concession to Protestant critics, and codified Catholic dogma far more than ever before. Decrees were issued proclaiming the validity and importance of holy relics, and the scriptural validity of the worship of the Virgin Mary -- and the granting of indulgences. Attempts were made to reduce corruption in the church, but doctrine remained much as before.
So indulgences remained a part of the Catholic canon. In 1567, Pope Pius V prohibited them from actually being sold--but it remained possible to obtain them by doing good works, where "good works" include monetary donations.
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