The thirty-four years which followed the Peace of Utrecht are a period of decadence and decay; a depressing period exhibiting the spectacle of a State, which had played a heroic part in history, sinking, through its lack of inspiring leadership and the crying defects inherent in its system of government, to the position of a third-rate power. The commanding abilities of the great stadholders of the house of Orange-Nassau, and during the stadholderless period which followed the untimely death of William II, those of the Council-Pensionary, John de Witt, had given an appearance of solidarity to what was really a loose confederation of sovereign provinces. Throughout the 17th century maritime enterprise, naval prowess and world-wide trade had, by the help of skilled diplomacy and wise statesmanship, combined to give to the Dutch Republic a weight in the council of nations altogether disproportionate to its size and the number of its population. In the memorable period of Frederick Henry the foundations were laid of an empire overseas; Dutch seamen and traders had penetrated into every ocean and had almost monopolised the carrying-trade of Europe; and at the same time Holland had become the chosen home of scholarship, science, literature and art. In the great days of John de Witt she contended on equal terms with England for the dominion of the seas; and Amsterdam was the financial clearing-house of the world. To William III the Republic owed its escape from destruction in the critical times of overwhelming French invasion in 1672, when by resolute and heroic leadership he not only rescued the United Provinces from French domination, but before his death had raised them to the rank of a great power. Never did the prestige of the States stand higher in Europe than at the opening of the 18th century. But, as has already been pointed out, the elevation of the great stadholder to the throne of England had been far from an unmixed blessing to his native land. It brought the two maritime and commercial rivals into a close alliance, which placed the smaller and less favoured country at a disadvantage, and ended in the weaker member of the alliance becoming more and more the dependent of the stronger. What would have been the trend of events had William survived for another ten or fifteen years or had he left an heir to succeed him in his high dignities, one can only surmise. It may at least be safely said, that the treaty which ended the war of the Spanish succession would not have been the treaty of Utrecht.

William III by his will made his cousin, John William Friso of Nassau-Siegen, his heir. Friso (despite the opposition of the Prussian king, who was the son of Frederick Henry's eldest daughter) assumed the title of Prince of Orange; and, as he was a real Netherlander, his branch of the house of Nassau having been continuously stadholders of Friesland since the first days of the existence of the Republic, he soon attracted to himself the affection of the Orangist party. But at the time of William III's death Friso was but fourteen years of age; and the old "States" or "Republican" party, which had for so many years been afraid to attempt any serious opposition to the imperious will of King William, now saw their opportunity for a return once more to the state of things established by the Great Assembly in 1651. Under the leadership of Holland five provinces now declared for a stadholderless government. The appointment of town-councillors passed into the hands of the corporations or of the Provincial Estates, not, however, without serious disturbances in Gelderland, Utrecht, Overyssel and also in Zeeland, stirred up partly by the old regent-families, who had been excluded from office under William, partly by the gilds and working folk, who vainly hoped that they would be able to exercise a larger share in the government. In many places faction-fights ensued. In Amersfoort two burghers were tried and beheaded; in Nijmwegen the burgomaster, Ronkens, met the same fate. But after a short while the aristocratic States party everywhere gained control in the town-corporations and through them in the Provincial Estates. In Zeeland the dignity of "first noble" was abolished.

The effect of all this was that decentralisation reached its extreme point. Not only were there seven republics, but each town asserted sovereign rights, defying at times the authority of the majority in the Provincial Estates. This was especially seen in the predominant province of Holland, where the city of Amsterdam by its wealth and importance was able to dictate its will to the Estates, and through the Estates to the States-General. Money-making and trade profits were the matters which engrossed everybody's interest. War interfered with trade; it was costly, and was to be avoided at any price. During this time the policy of the Republic was neutrality; and the States-General, with their army and navy reduced more and more in numbers and efficiency, scarcely counted in the calculations of the cabinets of Europe.