To assist the Governor-General, the British Government had sent out Sir Eyre Coote in 1780 to the scene of his former fame, not only as Commander of the Forces in place of Clavering, but also as member of Council. Coote usually supported Hastings in the Council, but he greatly embarrassed him by the insatiable spirit of avarice which had grown upon him with years; and in making arrangements with the Nabob of Oude and others to supply the means of accommodation to the old commander, Hastings largely augmented the grounds of his future persecutions. The war with the Mahrattas and the announcement of the speedy arrival of a French armament on the coast of Coromandel induced the Company's old enemy, Hyder Ali, to think it a good opportunity to recover some of his territory from the Company. He saw that the present opportunity was most favourable for taking a signal revenge on the English. For years he had concerted with the French a grand plan for the destruction of the British power; and even whilst he remained quiet, he was preparing with all his energies for its accomplishment. He had squeezed his treasurers and collectors to the utmost for the accumulation of money, and mustered an army of nearly ninety thousand men, including twenty-eight thousand cavalry and two thousand artillery and rocketmen, besides four hundred engineers, chiefly French. Hyder suddenly poured down from his hills with this host into the plains of Madras. To the last moment the authorities there appear to have been wholly unconscious of their danger. Besides this, the army in the presidency did not exceed six thousand men, and these were principally sepoys. This force, too, was spread over a vast region, part at Pondicherry, part at Arcot, part in Madras, but everywhere scattered into cantonments widely distant from each other, and in forts capable of very little defence. As for the forces of their ally, the Nabob of Arcot, they ran at the first issue of Hyder's army through the ghauts. On came the army of Hyder like a wild hurricane. Porto Novo on the coast, and Conjeveram near Trichinopoli, were taken; and Hyder advanced laying all waste with fire and sword, till he could be seen—a dreadful apparition—with his host from Mount St. Thomas, his progress marked by the flames and smoke of burning villages.
The inhabitants, men, women, and children, fled in terror from their splendid villas, around the city, into the fort of St. George. A fast-sailing vessel was dispatched to Calcutta, to implore the Governor-General to send them speedy aid of men and money. The forces were called together from different quarters, and Sir Hector Munro at the head of one body, and Colonel Baillie at the head of another, were ordered to combine, and intercept Hyder. First one place of rendezvous and then another was named, but, before the junction could take place, Baillie had managed to allow himself to be surrounded by the whole host of Hyder, and after a brave defence was compelled to surrender, one half of his troops being cut to pieces. The insults and cruelties of the troops of Hyder to their captives were something demoniac. Munro had sent to demand troops from the Nabob of Arcot, for whom the British were always fighting, and received a message of compliments, but no soldiers. On the defeat of Baillie he made a hasty retreat to Mount St. Thomas. Meanwhile, the call for aid had reached Calcutta, and Hastings instantly responded to it with all his indomitable energy. He called together the Council, and demanded that peace should be made at once with the Mahrattas; that every soldier should be shipped off at once to Madras; that fifteen lacs of rupees should be sent without a moment's delay to the Council there; that the incompetent governor, Whitehill, should be removed; and Sir Eyre Coote sent to perform this necessary office, and take the command of the troops. Francis, who was just departing for England, raised as usual his voice in opposition. But Hastings' proposals were all carried. The troops, under Sir Eyre Coote, were hurried off, and messengers dispatched in flying haste to raise money at Moorshedabad, Patna, Benares, Lucknow—in short, wherever the authority of Hastings could extort it. At the same time, other officers were sent to negotiate with the Mahrattas for peace.
Coote landed at Madras at the beginning of November. A council was immediately called, Whitehill was removed from the government of the Presidency, and the member of Council next in seniority appointed. Coote had brought with him only five hundred British troops and six hundred Lascars. The whole force with which he could encounter Hyder amounted only to one thousand seven hundred Europeans and five thousand native troops. Coote, whose name as the conqueror of the French at Wandewash and Pondicherry struck terror into Hyder, soon resumed his triumphs on his old ground, driving the enemy from Wandewash. Hearing then of the arrival of the French armament off Pondicherry, he marched thither, and posted himself on the Red Hills. The French fleet, consisting of seven ships of the line and four frigates, was anchored off the place. But the French squadron having sailed away for the Isle of France, from apprehension of the approach of a British fleet, Hyder retreated, and, entering the territory of Tanjore, laid it waste, while his son, Tippoo, laid siege again to Wandewash. Hyder was again encouraged to advance, and on the 6th of July, 1781, Coote managed to bring him to action near Porto Novo, and completely routed him and his huge host, though he had himself only about eight thousand men. Hyder retired quite crestfallen to Arcot, and ordered Tippoo to raise the siege of Wandewash.
Notwithstanding that Hyder had established his camp soon after in a strong position near the village of Pollilore, he was attacked on the 27th of August by Eyre Coote. On this occasion Sir Hector Munro warned Coote of the disadvantages of ground under which he was going to engage, and the inevitable sacrifice of life. Coote replied angrily, "You talk to me, sir, when you should be doing your duty!" His warning, however, was just. Coote did not succeed in driving Hyder from his post without severe loss. But again, on the 27th of September, another battle was fought between them in the pass of Sholinghur, near Bellore, in which Coote defeated Hyder with terrible loss. This battle relieved the English garrison in Bellore, and the rainy season put an end to operations, but the Carnatic was saved.
On the 22nd of June, 1781, Lord Macartney arrived at Madras to take the place of Whitehill as Governor. He brought the news of the war having broken out between the British and the Dutch, and he determined to take advantage of it to seize the Dutch settlements on the coast of Coromandel and in Ceylon. But Sir Eyre Coote had lately had a stroke of palsy; his faculties were failing, and his temper had grown morose. Finding he could obtain no assistance from the Commander-in-chief, Macartney called out the militia of Madras, and at their head reduced the Dutch settlements of Sadras and Pulicat. Finding Sir Hector Munro waiting at Madras for a passage to England, in consequence of the insulting conduct of Sir Eyre Coote, he induced him to take the command of an expedition against Negapatam. Admiral Hughes landed the troops near Negapatam on the 21st of October; they then united with a force under Colonel Braithwaite, and on the 12th of November Negapatam was taken, with large quantities of arms and military stores. Leaving Braithwaite to make an expedition in Tanjore, where, in February of the coming year, he was surrounded by Tippoo and Lally, the French general, and taken prisoner, Admiral Hughes sailed across to Ceylon, a most desirable conquest, because of its secure harbour of Trincomalee, as well as the richness and beauty of the island, and also on account of its position, for it lay only two days' sail from Madras. On the 11th of January, 1782, Trincomalee was won.
But in February the long-expected armament from France arrived on the Coromandel coast. Suffren, the admiral, was one of the ablest sea-commanders of France. On his way he had secured the Cape of Good Hope against the English, and he now landed at Porto Novo two thousand French soldiers to join the army of Hyder Ali. Tippoo, flushed with the recent capture of Colonel Braithwaite, invited the French to join him in an attack on Cuddalore, an important town between Porto Novo and Pondicherry. This was done, and Cuddalore was wrested from the English in April. Whilst these events were taking place on land, repeated engagements occurred with the British fleets on the coasts. That of Admiral Hughes was reinforced by fresh ships from England, and between February, 1782, and June, 1783, the British and French fleets fought five pitched battles with varied success. In none of these was any man-of-war captured by either side, nor any great number of men lost; but, eventually, Suffren succeeded in retaking Trincomalee, in Ceylon, from the British.
From Cuddalore, Tippoo and Bussy, the French general, turned their forces against Wandewash; but they were met by Coote, though he was now sinking and failing fast. They retreated, and he attempted to make himself master of the strong fort of Arnee, where much of the booty of Hyder was deposited; but Hyder made show of fighting him whilst Tippoo carried off all the property. Tippoo was obliged to march thence towards Calicut, where the Hindoo chiefs, his tributaries, were joining the British under Colonel Mackenzie. Hyder at this moment was confounded by the news of the peace made by Hastings with the Mahrattas, and expected that those marauders would speedily fall on Mysore. His health was fast declining, and yet he dared not introduce his allies, the French, into his own territory, lest he should not so readily get them out again. Besides his suspicions of the French, he had constant fears of assassination. Hyder died in December, 1782.
At the time that Tippoo heard of the death of his father, he was, assisted by the French, eagerly pressing on the most inferior force of Colonel Mackenzie, not very far from Seringapatam. Mackenzie being obliged to retire, was suddenly set upon, before daylight, near Paniany, about thirty-five miles from Calicut, by the whole force; but he repulsed them with great slaughter. Tippoo then fell back and made the best of his way to his capital to secure his throne and the treasures of Hyder Ali. He found himself at the age of thirty master of the throne, of an army of nearly one hundred thousand men, and of immense wealth. With these advantages, and the alliance of the French, Tippoo did not doubt of being able to drive the British out of all the south of India. Yet, with his vast army, accompanied by nine hundred French, two thousand Sepoys, and nearly three hundred Kafirs, Tippoo retreated, or appeared to be retreating, before General Stuart, with a force of only fourteen thousand men, of whom three thousand alone were British. He was, in fact, however, hastening to defend the north-west districts of Mysore from another British force on the coast of Canara. This force was that of Colonel Mackenzie, joined by another from Bombay, under General Matthews, who took the chief command in that quarter.
News now arrived of peace concluded between Britain and France. The French, to whom their possessions were restored, at once ceased hostilities and went to occupy their reacquired settlements. But Tippoo continued the war, bent on taking Mangalore. Nothing could now have prevented the English from completely conquering but the stupidity of the Council of Madras. They sent commissioners to treat with Tippoo, who, once getting them into his camp, made them really prisoners, kept all information from them, and induced them to issue orders to the English officers to cease hostilities. By these orders a junction between Stuart and Colonel Fullarton, and the immediate investment and seizure of Seringapatam, Tippoo's capital, were prevented. Fullarton had overrun a great portion of the southern districts of Mysore, and had entered into close alliance with the Zamorin of Calicut, the Rajah of Travancore, and other rajahs, tributary to Tippoo, all the way from Cochin to Goa. With ample supplies of provisions and other aids from these chiefs, Fullarton was in full march to join Stuart, and laid siege to Seringapatam, when he received peremptory orders to give up the enterprise, as the British were about concluding terms with Tippoo. Exceedingly disconcerted by these commands, which thus frustrated the results of this wonderful campaign, Fullarton, however, had no alternative but to obey, and Tippoo thus held on till he had starved out Campbell, and gained the fort of Mangalore. Then he concluded peace on condition of mutual restitution of all conquests since the war. This peace was signed on the 11th of March, 1784.
Warren Hastings had saved Madras and the Carnatic, but only at the cost of extortion. To obtain the necessary money, he began a system of robbery and coercion on the different princes of Bengal and Oude. The first experiment was made on Cheyte Sing, the Rajah of Benares, who had been allowed to remain as a tributary prince when that province was made over to the British by the Nabob of Oude. The tribute had been paid with a regularity unexampled in the history of India; but when the war broke out with France, Hastings suddenly demanded an extraordinary addition of fifty thousand pounds a year, and as it was not immediately paid, the Rajah was heavily fined into the bargain. This was rendered still more stringent in 1780, when the difficulties in Madras began. Cheyte Sing sent a confidential agent to Calcutta, to assure Hastings that it was not in his power to pay so heavy a sum, and he sent him two lacs of rupees (twenty thousand pounds), as a private present to conciliate him. Hastings accepted the money, but no doubt feeling the absolute need of large sums for the public purse, he, after awhile, paid this into the treasury, and then said to Cheyte Sing that he must pay the contribution all the same. He compelled the Rajah to pay the annual sum of fifty thousand pounds, and ten thousand pounds more as a fine, and then demanded two thousand cavalry. After some bargaining and protesting, Cheyte Sing sent five hundred horsemen and five hundred foot. Hastings made no acknowledgment of these, but began to muster troops, threatening to take vengeance on the Rajah. In terror, Cheyte Sing then sent, in one round sum, twenty lacs of rupees (two hundred thousand pounds) for the service of the State; but the only answer he obtained for the munificent offering was, that he must send thirty lacs more, that is, altogether, half a million.