John Churchill, 1st Duke of Marlborough
Dismissal and disgrace

William III recognised Marlborough's qualities as a soldier and strategist, but the refusal of the Order of the Garter and failure to appoint him Master-General of the Ordnance rankled with the ambitious Earl; nor did Marlborough conceal his bitter disappointment behind his usual bland discretion. Using his influence in Parliament and the army, Marlborough aroused dissatisfaction concerning William's preferences for foreign commanders, an exercise designed to force the King's hand. Aware of this, William, in turn, began to speak openly of his distrust of Marlborough; the Elector of Brandenburg 's envoy to London overheard the King remark that he had been treated – "so infamously by Marlborough that, had he not been King, he would have felt it necessary to challenge him to a duel ".

Since January 1691 Marlborough had been in contact with the exiled James II in Saint-Germain, anxious to obtain the erstwhile King's pardon for deserting him in 1688 – a pardon essential for the success of his future career in the not altogether unlikely event of a Jacobite restoration. James himself maintained contact with his supporters in England whose principal object was to re-establish him upon his throne. William was well aware of these contacts (as well as others such as Baron Godolphin and the Duke of Shrewsbury), but their double-dealing was seen more like an insurance policy, rather than as an explicit commitment. Marlborough did not wish for a Jacobite restoration, but William was conscious of his military and political qualities, and the danger the Earl posed: "William was not prone to fear", wrote Thomas Macaulay, "but if there was anyone on earth that he feared, it was Marlborough".

By the time William and Marlborough had returned from an uneventful campaign in the Spanish Netherlands in October 1691, their relationship had further deteriorated. In January 1692, the Queen, angered by Marlborough's intrigues in Parliament, the army, and even with Saint-Germain, ordered Anne to dismiss Sarah from her household – Anne refused. This personal dispute precipitated Marlborough's dismissal. On 30 January 1692 (20 January 1691 O.S.), the Earl of Nottingham, Secretary of State, ordered Marlborough to dispose of all his posts and offices, both civil and military, and consider himself dismissed from all appointments and forbidden the court. No reasons were given but Marlborough's chief associates were outraged: Shrewsbury voiced his disapproval and Godolphin threatened to retire from government. Admiral Russell, now commander-in-chief of the Navy, personally accused the King of ingratitude to the man who had "set the crown upon his head".
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