TWO:Whilst Clive had been reducing our enemies in Bengal and Oude, a more powerful antagonist than any whom we had yet encountered in India was every day growing more formidable in Mysore, and combining several of the petty chiefs of the different States of Madras as his allies against us. He was now far more considerable than when he had appeared against us as the ally of the French general, Lally, in the neighbourhood of Pondicherry. Hyder Ali was a self-made man. He was originally the grandson of a wandering fakir; then the captain of banditti; then at the head of an army composed of freebooters; continually growing in the number of his followers, and in the wealth procured by plunder, he at length became Commander-in-Chief of the Rajah of Mysore. Soon rising in his ambition, he seized the Rajah, his master, pensioned him off with three lacs of rupees, and declared himself the real Rajah. In 1761 he was become firmly established on the throne of Mysore, but this distinction did not satisfy him. He determined to be the founder of Mysore as a great kingdom, and extended his power to near the banks of the Kistnah. There he was met and repulsed by the Peishwa of the Mahrattas, who crossed the Kistnah, defeated him repeatedly, seized some of his newly-acquired territory, and levied on him thirty-two lacs of rupees. Hyder returned to Seringapatam, which he had made his capital, and had strongly fortified, and he thence conducted an expedition against Malabar, which he conquered, and put the chiefs to death to make his hold of it the more secure. It is unnecessary to go minutely into the history of the next few years. Hyder organised an army of 100,000 men, officered by Frenchmen, and sometimes in confederation with the Nizam of the Deccan, sometimes in conjunction with the Mahrattas of the Western Ghauts, waged perpetual war on the English. In 1769 Indian Stock fell sixty per cent. The resources of the Company were fast becoming exhausted, when Hyder Ali, by an artful feint, drew the English army, in the spring of 1769, a hundred and forty miles to the south of Madras. Then, by a rapid march, he suddenly appeared, with a body of five thousand horse, on the heights of St. Thomas, overlooking Madras. The whole of the city and vicinity, except the port of St. George itself, lay at his mercy. The terrified Council, in all haste, offered most advantageous terms of peace, which it was the very object of Hyder to accept, and that, too, before the English commander,[321] Colonel Smith, could arrive and intercept his retreat. Hyder gladly consented to the terms, which were those of mutual restitution, and of alliance and mutual defence: the last, a condition which, with Hyder's disposition to aggrandisement, was sure to bring the English into fresh trouble.THE SOUTH SEA BUBBLE. (After the Picture by E. M. Ward, R.A., in the National Gallery, London.)

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