In order to favour people settling in the city, he built new stone houses, and there were freihauses for the landed gentry.

Around the same time Charles began construction of a large palace to replace the ruins of the medieval castle of Frankenstein.

By the middle of the 16th Century, the Duchy was so heavily indebted that it had to be pledged at times; the high cost of the palace probably contributed to this problem.

The exercise of these offices was incurred a significant financial burden for Charles, so he was forced to sell parts of his territories.

Although Charles read Martin Luther's writings with a benevolent interest, he maintained his Catholic faith during the Reformation.