On September 20, 1187 Saladin begins the Siege of Jerusalem. From the article:
"After a brief reconnoiter around the city, Saladin's army came to a rest before the Tower of David and the Damascus Gate.[8] His archers continually pelted the ramparts with arrows. Siege towers/belfries were rolled up to the walls, but were pushed back each time. For six days, skirmishes were fought with little result. Saladin's forces suffered heavy casualties after each assault. On September 26, Saladin moved his camp to a different part of the city, on the Mount of Olives where there was no major gate from which the crusaders could counter-attack. The walls were constantly pounded by the siege engines, catapults, mangonels, petraries, Greek fire, crossbows, and arrows. A portion of the wall was mined, and it collapsed on September 29. The crusaders were unable to push Saladin's troops back from the breach, but at the same time the Muslims could not gain entrance to the city. Soon there were only a few dozen knights and a handful of remaining men-at-arms defending the wall, as no more men could be found even for the promise of an enormous fee.[9]
The civilians were in great despair. According to a passage possibly written by Ernoul, a squire of Balian, in the Old French Continuation of William of Tyre, the clergy organized a barefoot procession around the walls, much as the clergy on the First Crusade had done outside the walls in 1099. At Mount Calvary, women cropped their children's hair, after immersing them chin-deep in basins of cold water. These penances were aimed at turning away God's wrath from the city, but "…Our Lord did not deign to hear the prayers or noise that was made in the city. For the stench of adultery, of disgusting extravagance and of sin against nature would not let their prayers rise to God." [10]
At the end of September, Balian rode out with an envoy to meet with the sultan, offering surrender. Saladin told Balian that he had sworn to take the city by force, and would only accept an unconditional surrender.[11] Saladin told Balian that Saladin's banner had been raised on the city wall, but his army was driven back. Balian threatened that the defenders would destroy the Muslim holy places, slaughter their own families and the 5000 Muslim slaves, and burn all the wealth and treasures of the Crusaders.[12] Saladin, who wanted to take the city with as little bloodshed of his fellow Muslims as possible, insisted that the Crusaders were to unconditionally surrender but could leave by paying a ransom of ten dinars for men, five for women and two for children; those who couldn't pay would be enslaved. Balian told him that there were 20,000 in the city who could never pay that amount. Saladin proposed a total of 100,000 dinars to free all the 20,000 Crusaders who were unable to pay. Balian complained that the Christian authorities could never raise such a sum. He proposed that 7,000 of them would be freed for a sum of 30,000 dinars, and Saladin agreed."