690 A. D. 1 781. 



fugars produced in the colonies of Demararay and Iflequibo (or Ellc- 

 quibo) lately taken from the Dutch, were allowed to be imported as 

 Britifh fugars, notwithftanding the act, [6 Ceo. Ill, c. 52] which con- 

 fidered as foreign all fugars imported from the continent of America. 

 [21 Geo. Ill, c. 6 2.] 



The Eaft-India company made up an account of the profits of their 

 trade and territorial revenues to the i" day of March 1781, whereby 

 there appeared a balance, after paying X^400,ooo to the public accord- 

 ing to agreement, of ^(^288,025 : 17 : 10. This fum they were after- 

 wards authorized to pay in dividends to the proprietors of the ftock : 

 but they chofe rather to employ it in their trade ; and they have kept 

 a diftind account of it under the title of l^be company's Jeparate fund, 

 which they have annually credited with intereft. 



The fcrvants of the Eaft-India company had engaged in hoflilities 

 with the Mahrattas, a fierce and warlike nation of freebooters, whom 

 the Moguls, when in the zenith of their power, had never been able 

 to reduce to their dominion. At the fame time they were alfo at war 

 with Hyder Ally, a prince of capacity and power, beyond any that had 

 ever appeared in that part of the world. In conjundtion with thefe two 

 great powers, almoft all the lefler princes of Hindooftan were confeder- 

 ated againft the interefts of the company ; and they were, moreover, 

 aflifted by the French, of whom Hyder had a confiderable number in 

 his own army. Hyder defeated a BritiQi army commanded by Colonel 

 Baillie (10'" September 1780), over-ran the whole country belonging to 

 the company and their allies, and (31" Odober 1780) took the city of 

 Arcot, the capital of a nabob, who had long been very clofely allied with 

 the prefidency of Madras, whereby he threw the whole of the company's 

 affairs in that quarter into the utmoft confufion and diftrefs, which were 

 not a little aggravated by the diifenfions, which at the fame time dif- 

 traded the counfels of that prefidency. In lliort, from the concurrence 

 of fo many difafters, many people were induced to think the fituation 

 of the company'^ affairs utterly defperate. Sir Edward Hughes gave the 

 firft turn to this run of adverlity in India, by deftroying feveral warlike 

 veffels belonging to Hyder in Mangulore, his principal port (8'" Decem- 

 ber 1780). And afterwards Sir Eyre Coote, having arrived in March 

 178 1 with a fmall reinforcement from Bengal, and alTumed the com- 

 mand of the army, the affairs of the company began to put on a more 

 profperous appearance. That able commander regained feveral of the 

 places, which had fubmitted to Hyder, and with a very inferior force 

 defeated him in a great pitched battle on the 1" of July 1781 ; after 

 which fuccefs continued to fmile upon the arms of the company through- 

 out the remainder of the war *. 



* It appears, however, very probable, that and by their hoflilities, with the European powers, 

 the princts of Hiudooftai), by their alliances, will in time become maflcrs of the European art 



