Outremer
Fall of Jerusalem
The defense of Jerusalem was organized by Balian of Ibelin. He had fought at Hattin and had escaped and gone to Tyre. But his wife and children were in Jerusalem. Balian asked for and received permission from Saladin to go to Jerusalem to fetch his family, on condition that he not remain there more than one night. Once he got to the city, though, the Patriarch and citizens begged him to stay. Balian wrote to Saladin to explain why he was breaking his agreement. Saladin, famous for his chivalry, not only forgave Balian, but provided Balian's family safe conduct back to Tyre.
The situation in Jerusalem was literally hopeless. There was a grand total of three knights in the entire city—counting Balian. For every adult male there were fifty women and children. Balian commandeered every bit of money he could find and armed every man, whether or not he knew how to fight. The Christians simply would not give up Jerusalem without a fight. They could always hope for a miracle—Crusader legends were filled with them.
Saladin arrived on September 20th. He spent a few days trying to decide where best to attack the city, for the great walls were now Jerusalem's best defense. The defenders fought well, but there was no reason to hope, unless the ground itself should swallow up the Muslim army, for there was no Christian army near or even far that could help. Only Saladin's reluctance to storm the city and initiate a massacre saved the defenders. On the 30th, Balian went out to negotiate.
Even as the battle proceeded, the two men talked. Balian was at least able to arrange terms, which were quite generous, given the situation. The city was to surrender unconditionally, but the Christians were allowed to buy their freedom: ten dinars for a man, five for a woman, one for a child. Seven thousand of the poor would be freed for a lump sum of thirty thousand dinars. Balian agreed.
The fighting stopped on October 1st; Saladin entered the city the next day. While the Muslim troops kept order, two streams of Christians left the city—one for freedom, the other for slavery. The Patriarch Heraclius and his priests each paid their ten dinars, then left the city laden with gold and silver and relics by the cartload. Saladin's brother al-Adil was so moved by the sight that he asked for a thousand captives as a reward for his services. Saladin granted this, and al-Adil immediately set them free. Saladin in his turn set free all the aged. Not all the Muslims were so generous, and other Christians were tricked and blackmailed by various emirs, but Saladin's behavior was recognized by both the Muslim and Christian world as an act of great generosity.
The refugees could not all fit into Tyre, which admitted only fighting men (few enough). The rest continued to Tripoli, which was likewise bursting at the seams, and many wound up having to go all the way to Antioch to find refuge at last. Back in Jerusalem, the Orthodox and Jacobite Christians were allowed to stay, having only to pay the special tax imposed by Islam. Most of the holy places were turned over to the Greek Orthodox Church. In fact, the Church of the Holy Sepulchre was closed for only three days, and the stream of Latin pilgrims soon recommenced.