The City of Salzburg was politically unstable, after in 1481 Emperor Frederick III of Habsburg had granted its citizens the privilege to elect its own council and mayor, which was the cause of a protracted struggle with the ruling archbishops.
In 1511, Leonhard ended the unrest: He invited the mayor and councillors for a gala dinner, had them imprisoned and forced them to renounce their rights.
Leonhard was an effective ruler, he reformed the archbishopric's finances, paying off old debts and developing the economy by farming out, increasing the salt production, the silver and gold mines and promoting trade.
His efforts made Salzburg one of the richest states of the Holy Roman Empire, starting a long tradition of a local culture rich in music and art.
Leonhard also used his wealth to buy back lands sold by his predecessors to cover their debt and to support Emperor Maximilian I financially, which brought further economic and political advantages.