In 1439 Sigismund succeeded his father Frederick in the Habs burg lands in Alsace, the Thurgau, and Tirol and, being much irri tated by the constant encroachments of the Confederates, in par ticular by the loss of Rapperswil (1458), declared war against them, but fared very badly. In 146o the Confederates overran the Thurgau and occupied Sargans. Winterthur was only saved by an heroic defence. Hence in 1461 Sigismund had to give up his claims on those lands and renew the peace for 15 years, while in 1467 he sold Winterthur to Zurich. Thu:, the whole line of the Rhine was lost to the Habsburgs, who retained (till 1801) in the territories of the Confederates the Frickthal only. The Thurgovian bailiwicks were governed in common as "subject" lands by all the Confederates except Berne. The touchiness of the now rapidly advancing League was shown by the eagerness with which in 1468 its members took up arms against certain small feudal nobles who were carrying on a harassing guerrilla warfare with their allies Schaffhausen and Mulhouse. They laid siege to Waldshut, and to buy them off Sigismund in Aug. 1468 engaged to pay 1 o,000 gulden as damages by June 24, 1469; in default of payment the Confederates were to keep for ever the Black For est, and Waldshut on the Rhine. A short time before (1467) the League had made treaties of friendship with Philip the Good, duke of Burgundy, and with the duke of Milan.
Sigismund's treaty of 1468 with the Swiss, and placed them under the ban of the empire.
The Swiss in these circumstances began to look towards Louis XI. of France, who had confirmed the treaty of friendship made with them by his father in 1452. Sigismund had applied to him early in 1469 to help him in his many troubles, and to give him aid against the Swiss, but Louis had point-blank refused. Anxious to secure their neutrality in case of war between him and Charles, he made a treaty with them on Aug. 13, 1470 to this effect.
Sigismund in the next few years tried hard to get from Charles the promised aid against the Swiss (the money was paid punctually enough by Charles on his behalf). Charles on his side, in 1471-72, tried to make an alliance with the Swiss. Probably Charles wished to use both Sigismund and the Swiss to further his own interests, but his shifty policy had the effect of alienating both from him. Sigismund, disgusted with Charles, now inclined towards Louis, whose ally he formally became in the summer of 1473. The Con federates on their side were greatly moved by the oppression of their friends and allies in Alsace by Hagenbach, and tried in vain (Jan. 1474) to obtain some redress from his master. Charles's too astute policy had thus lost him both Sigismund and the Swiss. They now looked upon Louis, who, thoroughly aware of Charles's ambition, aimed at the reconciliation of Sigismund and the Swiss. On March 3o, 1474 the Everlasting Compact was signed at Con stance, by which Sigismund finally renounced all Austrian claims on the lands of the Confederates; they, on the other hand, agreed to support him if Charles did not give up the mortgaged lands when the money was paid down. The next day the Swiss and Sigismund joined the league of the Alsatian and Rhine cities. Charles was called on to receive the money contributed by the Alsatian cities, and to restore his lands to Sigismund. He, how ever, took no steps. Within a week the oppressive bailiff Hagen bach was captured, and a month later (May 9, 1474) he was put to death. On Oct. 9, the emperor, acting of course at the in stance of Sigismund, ordered the Swiss to declare war against Charles, which took place on Oct. 25. Next day Louis formally ratified his alliance with the Confederates, promising money and pensions, the latter to be increased if he did not send men. Throughout these negotiations and later Berne directs Swiss policy, though all the Confederates are not quite agreed. She was spe cially exposed to attack from Charles and Charles's ally (since 1468) Savoy, and her best chance of extending her territory lay towards the west and south. The Forest districts, however, were very suspicious of this movement to the west, by which Berne alone could profit, though the League as a whole might lose ; then, too, Uri had in 1440 finally won the Val Leventina, and she and her neighbours favoured a southerly policy—a policy which was crowned with success after the gallant victory won at Giornico in 1478 by a handful of men from Zurich, Lucerne, Uri and Schwyz over 12,00o Milanese troops.