Luther saw this from afar. The Elector forbad the selling of indulgences within Electoral Saxony. His motive has less to do with theology and more to do with economics. The Elector himself had a vast array of relics which he opened for public view, for a price, every November 1, "All Saints' Day." What better way to celebrate "All Saints Day" than to view the remains of the Apostolic saints, or other saints who did so much for their church and fellow believers?
But while Luther saw the buying and selling of indulgences from afar, it wasn't too far for Saxons and Wittenbergers to cross the river to buy them from the source. And Luther often ran into people in licentious behavior who felt no guilt. Their reasoning was that they had paid for their sins by buying the indulgence! They "earned" the right to be drunk, to fornicate, to steal, and whatever other sinful and anti-social behavior they practiced. To Luther this was a sell-out of the Grace won and earned by the precious blood of his Savior. The transfer of money cheapened the Grace paid for by God with a steep price.
Not that he agreed with what his boss was doing, either. The adoration of relics was an abomination in Luther's eyes. Again, it cheapened the Grace that was paid for with a high price of blood, suffering, and death.
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