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324 other leaders, succeeded in organizing a league against the British; but Holkar, although he agreed to a truce with Sindhia, refused to join, and the Gaikwar of Baroda kept apart. Sindhia, however, effected his junction with the Nagpur raja, whereupon both chiefs evaded the demand of the British envoy for a direct explanation of their intentions and marched up to the frontier of Haidarabad. It was in the interest of the Marathas to gain time, for they hoped that Holkar might be persuaded to enter the league; for the same reason it was important to the British that the two chiefs should be forced to decide speedily between peace or war. The Governor-General was now in his element again, for in Europe a renewal of the French war was evidently at hand; the English ministers had warned him that a French squadron was preparing at Brest for the East Indies; they had authorized him to retain possession of the French settlements that were to be restored under the Amiens Treaty; and they had desired him to keep his forces on a war-footing. At the same time, some observations, which appeared to the Governor-General particularly inopportune, were conveyed to him upon the increase of his military expenditure and the diversion of funds on which the Company relied for their trade.

Lord Wellesley, who had offered to resign, requested the ministers to "consider the alarm and anger of the Court of Directors on this latter subject with the indulgence which true wisdom extends to the infirmities of prejudice, ignorance, and passion"; while he prepared