As a man protesting against the mass of wealth accumulated by the Pope I was wondering what Luther proposed to do with all the lands and endowments obtained in those regions where the Catholic church lost her influence and ownership of various assets. Also what about the nuns and monks still living in those properties formerly owned by the Catholic church? What did Luther think should be done with them?
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Considering the intensity of the reformation one might possibly imagine some extreme idea like burning down the monasteries and tossing out the monks as heretics, or even burning them, but such is the opposite of what Luther was about at the personal level. Although Luther has said some of the most harsh language ever recorded against Catholic doctrine, Luther had a very kind attitude towards Catholics themselves, in terms of their welfare. As a matter of history, Luther in fact directly sought to ensure their protection and economic welfare.
With regard to rural monasteries, Luther did no suggest they be burned down, but instead to treat kindly those in error through Christian love, even to support them financially for the rest of their lives:
For those monasteries in the cities Luther thought they could be converted to Christian schools. I presume he meant any monks or nuns who wanted to stay would be relocated to rural locations.
Luther had the same loving approach with respect to bishoprics, foundations, and chapters which have under their control lands, cities, and other possessions, etc. His aim was to build a community chest for the poor, 'for all who were needy among the Christians.'
Where the remaining family which originally endowed the properties to the church were now suffering poverty Luther thought it should be divided between the poor and the original family:
So we see that though Luther strongly condemned the beliefs of Catholics during the reformation his personal attitude to their persons (not their doctrine) was like a caring father desiring to take care of all involved. This bit of history is somewhat of a surprising liberal and generous position, easily overlooked by the doctrinal passions and battle of the reformation.