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Rh selves by capturing Amadabad and Gwalior, but the war failed in its object. The ally of the British retired on a pension, but Salsette and some other islands were added to the British possessions by the peace of 1782.

A second war with Mysore had broken out with the great Haidar Ali of Mysore. He was defeated in four engagements by Sir Eyre Coote, who had, twenty years before, beaten the French at Wandewash ; but Haidar Ali succeeded in safely withdrawing his troops from each battlefield, and his strength was not broken. On the other hand, by his excellent manoeuvres, he surrounded two British detachments, commanded by Colonel Baillie and Colonel Brathwaite, and completely destroyed them. But Haidar Ali died in 1782, and the war ended in a peace with his son, Tipu Sultan, in 1783.

On the death of the Nawab of Oudh in 1775, Warren Hastings had obtained a cession of the state of Benares from his successor ; and the Raja of Benares thus became a British vassal. Hastings demanded large contributions from the Raja in addition to the stipulated tribute ; imposed a heavy fine ; arrested and confined him ; and drove his subjects to rebellion. The Raja was deposed, and a relation of his was made Raja on condition of paying an enhanced tribute.

The new Nawab of Oudh was also called upon to pay the arrears due from him ; and as he pleaded inability, he was helped to rob his mother and his grandmother of their treasures, until over a million sterling was obtained to pay the debt. Assignments of the land revenue to British creditors, both in Oudh and in Madras, caused much hardship to the people ; and in Bengal, Warren Hastings disregarded the hereditary rights of Zemindars or landlords, and sold their estates by auction to get an enhanced revenue for the Company.

All these acts cast a shadow over the administration