The Poor Fellow-Soldiers of Christ and the Temple of Jerusalem, or Templars, was a military order founded in .

The Crusades and the Knights Templar The Knights Templar were an elite fighting force of their day, highly trained, well-equipped, and highly motivated; one of the tenets of their religious order was that they were forbidden from retreating in battle, unless outnumbered three to one, and even then only by order of their commander, or if the Templar flag went down. Not all Knights Templar were warriors. The mission of most of the members was one of support – to acquire resources which could be used to fund and equip the small percentage of members who were fighting on the front lines. There were actually three classes within the orders. The highest class was the knight. When a candidate was sworn into the order, they made the knight a monk. They wore white robes. The knights could hold no property and receive no private letters. They could not be married or betrothed and could not have any vow in any other Order. They could not have debt more than they could pay, and no infirmities. The Templar priest class was similar to the modern day military chaplain. Wearing green robes, they conducted religious services, led prayers, and were assigned record keeping and letter writing. They always wore gloves, unless they were giving Holy Communion. The mounted men-at-arms represented the most common class, and they were called "brothers". They were usually assigned two horses each and held many positions, including guard, steward, squire or other support vocations. As the main support staff, they wore black or brown robes and were partially garbed in chain mail or plate mail. The armor was not as complete as the knights. Because of this infrastructure, the warriors were well-trained and very well armed. Even their horses were trained to fight in combat, fully armored.Janetta Rebold Benton, Materials, methods, and masterpieces of medieval art, p. 257 (Greenwood Publishing Group, 2009). The combination of soldier and monk was also a powerful one, as to the Templar knights, martyrdom in battle was one of the most glorious ways to die.

The Templars were also shrewd tacticians, following the dream of Saint Bernard who had declared that a small force, under the right conditions, could defeat a much larger enemy. One of the key battles in which this was demonstrated was in 1177, at the Battle of Montgisard. The famous Muslim military leader Saladin was attempting to push toward Jerusalem from the south, with a force of 26,000 soldiers. He had pinned the forces of Jerusalem's King Baldwin IV, about 500 knights and their supporters, near the coast, at Ascalon. Eighty Templar knights and their own entourage attempted to reinforce. They met Saladin's troops at Gaza, but were considered too small a force to be worth fighting, so Saladin turned his back on them and headed with his army towards Jerusalem.

Once Saladin and his army had moved on, the Templars were able to join King Baldwin's forces, and together they proceeded north along the coast. Saladin had made a key mistake at that point – instead of keeping his forces together, he permitted his army to temporarily spread out and pillage various villages on their way to Jerusalem. The Templars took advantage of this low state of readiness to launch a surprise ambush directly against Saladin and his bodyguard, at Montgisard near Ramla. Saladin's army was spread too thin to adequately defend themselves, and he and his forces were forced to fight a losing battle as they retreated back to the south, ending up with only a tenth of their original number. The battle was not the final one with Saladin, but it bought a year of peace for the Kingdom of Jerusalem, and the victory became a heroic legend.

Another key tactic of the Templars was that of the "squadron charge". A small group of knights and their heavily armed warhorses would gather into a tight unit which would gallop full speed at the enemy lines, with a determination and force of will that made it clear that they would rather commit suicide than fall back. This terrifying onslaught would frequently have the desired result of breaking a hole in the enemy lines, thereby giving the other Crusader forces an advantage.Knights Templar: Protectors of the Holy Grail, video documentary on the National Geographic Channel, February 22, 2006, written by Jesse Evans

The Templars, though relatively small in number, routinely joined other armies in key battles. They would be the force that would ram through the enemy's front lines at the beginning of a battle, or the fighters that would protect the army from the rear. They fought alongside King Louis VII of France, and King Richard I of England.Richard the Lionheart and the Knights Templar Charles Greenstreet Addison, The History of the Knights Templars, 1842, pp. 141–49. In addition to battles in Palestine, members of the Order also fought in the Spanish and Portuguese Reconquista, such as at the Siege of Tomar in 1190.

Bankers Though initially an Order of poor monks, the official papal sanction made the Knights Templar a charity across Europe. Further resources came in when members joined the Order, as they had to take oaths of poverty, and therefore often donated large amounts of their original cash or property to the Order. Additional revenue came from business dealings. Since the monks themselves were sworn to poverty, but had the strength of a large and trusted international infrastructure behind them, nobles would occasionally use them as a kind of bank or power of attorney. If a noble wished to join the Crusades, this might entail an absence of years from their home. So some nobles would place all of their wealth and businesses under the control of Templars, to safeguard it for them until their return. The Order's financial power became substantial, and the majority of the Order's infrastructure was devoted not to combat, but to economic pursuits.

By 1150, the Order's original mission of guarding pilgrims had changed into a mission of guarding their valuables through an innovative way of issuing letters of credit, an early precursor of modern banking. Pilgrims would visit a Templar house in their home country, depositing their deeds and valuables. The Templars would then give them a letter which would describe their holdings. Modern scholars have stated that the letters were encrypted with a cipher alphabet based on a Maltese Cross; however there is some disagreement on this, and it is possible that the code system was introduced later, and not something used by the medieval Templars themselves. (referenced in Kahn's Codebreakers) While traveling, the pilgrims could present the letter to other Templars along the way, to "withdraw" funds from their accounts. This kept the pilgrims safe since they were not carrying valuables, and further increased the power of the Templars.

The Knights' involvement in banking grew over time into a new basis for money, as Templars became increasingly involved in banking activities. One indication of their powerful political connections is that the Templars' involvement in usury did not lead to more controversy within the Order and the church at large. Officially the idea of lending money in return for interest was forbidden by the church, but the Order sidestepped this with clever loopholes, such as a stipulation that the Templars retained the rights to the production of mortgaged property. Or as one Templar researcher put it, "Since they weren't allowed to charge interest, they charged rent instead."The History Channel, Decoding the Past: The Templar Code, video documentary, November 7, 2005, written by Marcy Marzuni

Their holdings were necessary to support their campaigns; in 1180, a Burgundian noble required 3 square kilometres of estate to support himself as a knight, and by 1260 this had risen to 15.6 km2. The Order potentially supported up to 4,000 horses and pack animals at any given time, if provisions of the rule were followed; these horses had extremely high maintenance costs due to the heat in Outremer (Crusader states at the Eastern Mediterranean), and had high mortality rates due to both disease and the Turkish bowmen strategy of aiming at a knight's horse rather than the knight himself. In addition, the high mortality rates of the knights in the East (regularly ninety percent in battle, not including wounded) resulted in extremely high campaign costs due to the need to recruit and train more knights.

The Templars' political connections and awareness of the essentially urban and commercial nature of the Outremer communities led the Order to a position of significant power, both in Europe and the Holy Land. They owned large tracts of land both in Europe and the Middle East, built churches and castles, bought farms and vineyards, were involved in manufacturing and import/export, had their own fleet of ships, and for a time even "owned" the entire island of Cyprus.Gary Lachman, Politics and the Occult: The Left, the Right, and the Radically Unseen, p. 41 (Quest Books, 2008).

Decline Their success attracted the concern of many other orders, with the two most powerful rivals being the Knights Hospitaller and the Teutonic Knights. Various nobles also had concerns about the Templars as well, both for financial reasons, and nervousness about an independent army that was able to move freely through all borders.

The long-famed military acumen of the Templars began to stumble in the 1180s. On July 4, 1187, came the disastrous Battle of the Horns of Hattin, a turning point in the Crusades. It again involved Saladin, who had been beaten back by the Templars in 1177 in the legendary Battle of Montgisard near Tiberias, but this time Saladin was better prepared. Further, the Grand Master of the Templars was involved in this battle, Gerard de Ridefort, who had just achieved that lifetime position a few years earlier. He was not known as a good military strategist, and made some deadly errors, such as venturing out with his force of 80 knights without adequate supplies or water, across the arid hill country of Galilee. The Templars were overcome by the heat within a day, and then surrounded and massacred by Saladin's army. Within months Saladin captured Jerusalem.

But in the early 1190s, in a remarkably short and powerfully effective campaign, Richard the Lionheart, King of England and leader of the Third Crusade, together with his allies the Templars, delivered a series of powerful blows against Saladin and recovered much of Christian territory. In name and number the revived Crusader states were as before, but their outlines were diminished. There was the Kingdom of Jerusalem, though its capital was at Acre, which the Templars made their new headquarters. To the north was the County of Tripoli. But the Muslims retained control of the Syrian coast around Latakia for some time, and so the Principality of Antioch further to the north was now no longer contiguous to the other Crusader states. Nevertheless, the Third Crusade, in which Richard relied heavily on the Templars, had saved the Holy Land for the Christians and went a long way towards restoring Frankish fortunes. In this he was abetted by the military orders, whose great castles stood like islands of Frankish power amid the Muslim torrent. More than ever the Crusader states were relying on the military orders in their castles and on the field of battle, and the power of the orders grew. In fact at no point in their history would the Templars be more powerful than in the century to come.

But after the Siege of Acre in 1291, the Templars were forced to relocate their headquarters to the island of Cyprus.