IV.

17676

vent any further increase of dividends, least the credit of CHAP. the Company should be affected. A regulation was likewife neceffary to prevent the fluctuation of India ftock, which, if allowed to go on, not only tended to introduce a pernicious spirit of gaming, but likewife to keep down the other stocks, whose rise had a great effect in reducing the intereft of the national debt; and that no encroachment might be made, by any dividend of the Company, upon the revenue of its late territorial acquifitions.

By the oppofers of the bill it was fhewn, that the Com pany was certainly in a fituation to divide 80,000l. among themselves, even after their agreement to pay 400,000 l. annually to government. The fluctuation of India ftock could be as effectually prevented by restraining the dividend to twelve and a half as to ten per cent.; and the Company were not averse to this restriction. Finally, it was urged, that the arguments used against the territorial right of the Company to their acquifitions in the country was a precedent of the most dangerous nature, and extremely unbecoming the justice as well as dignity of parliament; and that fuch a legislative interference with the rights of a trading Company, whofe effects were well known to be adequate to every neceffary purpose, was altogether without example.

Hyder Al

While government feemed thus intent on curbing the War with Company's power at home, a new and very troublesome ly. enemy had arifen in the east. This was Hyder Ally or Hyder Naig, who, from a common feapoy had made himself mafter of a confiderable part of the Malabar coaft, and become one of the most formidable princes of India. Having long ferved in the European armies, he was well acquainted with their discipline and manner of fighting; and of this knowledge he now endeavoured to avail himself, by introducing it among his own troops. He alfo procured fome renegadoes to affift in managing his artillery.

The conquefts he had as yet made were by no means fufficient to fatisfy the ambition of this new prince. He was fenfible, that the forces of the Eaft India company were by far the most formidable enemies he would have to contend with, and therefore attempted to strengthen himfelf by alliance. Having prevailed on the Nizam of Dean to renounce the friendship of the Company, he took the field in conjunction with his ally, at the head of a formidable army, to which the Company oppofed another under Colonel Smith, inferior indeed, as ufual, in numbers, but much more to be dreaded on account of the military skill of the officers and bravery of the foldiers. The two

IV.

1767. Sept. 26. The In

CHAP. armies met on the 26th of September, at a place called Errour near Trinomallee. The event was fimilar to what had happened in former battles of this kind; the Indians were overthrown with the lofs of a great number of men and seventy pieces of cannon. The purfuit lafted two dians de- days. The Nizam was happy to renew his alliance with the Company at a very confiderable expence; and Hyder Ally himself was obliged to transfer the feat of war to a mountanious country, where he could not again be foreed to a decifive action.

feated.

Feb. 25, 1763.

Fatal confe

An enterprize was next projected at Bombay against Mangalore, one of Hyder Ally's principal fea-ports, where all his fhips lay. Four hundred Europeans, and eight hundred feapoys were employed in the execution, and the event was conformable to their wishes. The place was reduced with very little lofs, 25th February, 1768; nine veffels of confiderable fize, and several smaller ones, were taken; but as a garrifon too fmall for the defence of the place, was injudicioufly left. Hyder Ally quickly retook it, making prifoners of all who had been left for its defence.

Encouraged by this fuccefs, he proceeded vigorously in quences of the profecution of the war; while, on the part of the appointing British it was managed in a more difgraceful manner than field depu had ever been known in that country. In order to proBritish Ar. mote the intereft of fome particular perfons, field deputies

ties in the

my.

had been appointed to fuperintend and direct the motions of the commander in chief; and as these were deeply concerned in contracts for the army, they took care to direct its motions in fuch a manner as beft fuited their own intereft. The effects of this appointment may be easily imagined. The officers finding themselves overruled in thofe operations of which they and they only were judges, quitted the fervice in difguft, or became carelefs in the execution of their duty; nay, fome were even known to defert the cause of their country, and enter into the fervice of their barbarous prince who opposed them; a thing hitherto unknown in the annals of Britain; while forts, eafily tenable, were given up in fuch a fhameful manner as to afford but too just reason to suspect that they had been betrayed to the enemy.

In the mean time Colonel Smith, now raised to the rank of General, was penetrating, with the fuccefs ufually attending the British arms, into the heart of the enemy's country, and would, undoubtedly have made himself mafter of their capital, had he not been prevented by the diffenfions arifing from the unhappy project of appointing field-deputies. Hyder Ally was too difcerning not to im

By the

IV.

1768. Hyder Ally

prove the advantage given him by the langour which in- CHAP. ftantly appeared in the operations of his enemy. celerity of his troops, confifting principally of horfe, he got between the British forces and the Carnatic, rendering it inftantly neceffary, by the ravages he committed, ravages the for General Smith to return to the defence of the Com- Carnatic. pany's territories. Thus were the British at once deprived of all the advantages they had gained; every town and fort they had conquered in the enemy's territories was abandoned: Hyder Ally's reputation was augmented to an incredible degree, and allies poured into him from all

quarters.

The abfence of General Smith was feverely felt by the Company's allies. The nabob of Arcot, against whom Hyder Ally had a particular enmity, on account of his long and faithful attachment to the British caufe, had his territories ravaged without mercy; and even when the English army returned, it was found infufficient to make an effectual defence. Hyder Ally, by his attack on the dominions of Arcot, had deprived them of one of their principal refources; he now fully understood the great fuperiority of the enemy in close engagements, and for that reafon avoided encounters of this kind with the ut most care; inftead of this he harraffed them by continual attacks on their detached parties, wearied them out by endless marches and purfuits, and ravaged the country in fuch a manner as effectually to complete its ruin; while, by the continual acceffion of new adventurers, his army, in autumn 1768, was augmented to ninety thousand men; the Mahratta princes courted his alliance, and he now threatened to become the moft formidable enemy the British had ever encountered in these parts.

Mul

As the urgency of affairs inftantly required fome vigorous exertions, Colonel Wood was detached, with a Battle of confiderable body of troops, to reduce one of the enemy's waggle, forts named Mulwaggle. Being repulfed in the first at- Oct. 4. tempt, Hyder Ally thought he might fafely venture to attack them, as their whole number confifted only of four hundred and fixty Europeans, and two thoufand three hundred feapoys. The force he employed on this occafion amounted to no lefs than fourteen thousand horfe, twelve thousand men armed with match-lock guns, and fix battalions of feapoys. Even fuch armies as thefe would formerly have been eafily defeated by the force which now opposed them; but here the cafe was found very different; the field of battle was loft and won five or fix times; and, ont he part of the British, three hundred were VOL. V. H

IV. 1768.

CHAP. killed and wounded, among whom were feveral brave officers; many were taken prisoners, and two pieces of cannon loft. On the part of the enemy the lofs was immenfe; but where numbers could be fo easily replaced, the lofs of men was fcarcely felt; fo that if any confequence attended the battle, it was only to give Hyder Ally an additional leffon, not to come to a close engagement with the Europeans, whatever his fuperiority in numbers might be.

Peace concluded.

Meafure

.

This victory, if it may be fo called, made no difference in the manner of conducting the war. The devaftations of Hyder Ally went on as ufual, and diffention continued to rage among the British troops. The expences of the campaign now became fo high, that the eftablishment of Madras was found infufficient to fupport them; it was therefore neceffary to make application to Bengal; and as the remittances from thence were made in a base kind of gold coin, the Company are faid to have loft 40,000 1. by the exchange.

Hyder Ally, in the mean time, having given the flip to the army in the Carnatic, advanced within a few miles of Madras, which occafioned fuch an alarm, that the council thought proper to enter into a negociation with him; but, though the Indian prince. fhewed himself fufficiently willing to enter into a definitive treaty, he abfolutely refused a truce of fifty days, which the council had required, left they should make use of this interval in making fresh preparations for war. A treaty was therefore concluded on the 3d of April, 1769, the terms of which fimply were, that each party fhould reftore the places taken during the war, and fit down contented with the expences they had been at. A perpetual league, offenfive and defenfive, was entered into, and a free trade allowed betwixt the Carnatic and the dominions of Hyder Ally.

In the mean time, however, the fuccefs with which Hyder Ally had carried on the war, not only threatened to raise up a new enemy in Sujah Dowlah, who had greatly taken by encreafed his army, but fpread a general alarm at home, the compa- where measures were inftantly refolved upon, for the reny to retrieve their formation of thofe abufes which had occafioned fo much affairs. lofs and difgrace, not only in India, but in Britain, as the value of India ftock was already funk upwards of fixty per cent. It was now determined, to fend three gentlemen, well verfed in the company's affairs, to India, under the title of fupervisors, with full power to examine the conduct of those who were already there, and regulate every thing according to the best of their judgment.

This new scheme gave the greatest alarm to the friends CHAP. of those gentlemen already in the caft; a ftrong party was IV. formed against the appointment of fupervifors; and, while both parties wafted their time in fruitlefs debates, the miniftry once more interfered, by demanding, that a fervant of the crown should have a principal share in the direction ministry. of the company's affairs.

1766. Interference of the

June 14.

By this time, Mr. Vanfittart, Mr. Scrafton, and colonel Supervifors Ford, had been chofen fupervifors, and their commiffions appointed, actually made out; but as the company well knew the importance of being fupported by a naval power in their tranfactions with the Indian princes, application was made to government for two fhips of the line and fome frigates. To this, no direct anfwer was given at that time, though, by the appointment of Sir John Lindsay to the command of the fquadron, it was thought to imply a tacit confent. As the request, however, had hitherto been made only by the. directors, it was thought neceffary, in order to add greater weight to it, that government fhould be addreffed on the fubject by a general court of the proprietors. This was accordingly done on the 27th July, and another court appoined to be held the 11th of Auguft following, in order July 27. to receive the answer. At this laft, a letter was read from lord Weymouth, one of the fecretaries of ftate, fetting forth, that "the commiffion, appointing the prefent fupervifors, had been taken into confideration by his majefty's fervants, and that it was their opinion, that it was, in fome refpects, illegal: That he was forry to find, in an answer he had received from the direction, with regard to the appointment of a naval officer, with full powers to adjuft all maritime affairs in India, that they had not fully acceded to it. He now, therefore, begged of the directors, that they would reconfider the commiffion in general, and that the particular article of granting unlimited powers to a naval officer, might be laid before the proprietary at large."

In confequence of this letter, a long correfpondence enfued between the directors and the miniftry; during the courfe of which, the defigns of the latter became more apparent. It was now perceived, that the naval officer abovementioned, was defigned, in fact, to fuperintend the fupervisors; and that in all affairs, whether naval, military, or political. To this the directors replied, that though they were willing to allow the naval officer a certain fhare in the government, along with the council of Bengal, it was yet thought improper to confer fuch extraordinary powers on a fingle perfon, which could not but produce the greateft confufion, by the continual interference confequent up