In a second action at Tseedong the force maintained the reputation it had gained. The Chinese fought with great bravery, and the difficulty, in fact, was in keeping them back. The English general reviewed them after this encounter, and declared himself much impressed with their appearance. Representations were made at Peking, and on 16th March 1862 an Imperial decree gave the first public recognition of the Ever Victorious Army.

Although reverses followed, the Corps maintained the reputation it had gained for steadiness and discipline. Under General Staveley at Wongkadza it acted well and lost heavily, and in all the subsequent movements of that officer it took a prominent part. When Tsingpu was captured, as already described, one of Ward's regiments was left in it as a garrison, but on the evacuation of that place in consequence of the return of Chung Wang with fresh and more numerous forces, it narrowly escaped annihilation. It was then that the Taeping general named them in scornful irony, "Cha-Yang-Kweitser," or "Sham Foreign Devils," the point of the sarcasm being that these troops wore an European costume.

During the summer of 1862, when the heat rendered active operations impossible, everything was done to increase both the numbers and the efficiency of the Ever Victorious Army. By the month of July its strength had been raised to 5000 men, the commissioned officers being all Europeans except one Chinese, named Wongepoo, who had been given a commission for special gallantry by Admiral Hope. Ward was in chief command, and Colonel Forrester and Burgevine were his first and second lieutenants. When the weather became a little cooler in August, it was determined to utilise this force for the recapture of Tsingpu, which was taken at the second assault on the 9th of that month, although not without heavy loss in officers and men. Six weeks later the important Taeping position at Tseki, across the Hangchow Bay and not far distant from Ningpo, was attacked by Ward and a party of English blue-jackets. The operation was perfectly successful, but Ward was shot in the stomach and died the next day. His loss was a very considerable one, for, as Gordon said, "he managed both the force and the mandarins very ably." Colonel Forrester should have succeeded to the command, but he declined the post, which then devolved upon Burgevine.

After a brief space the services of Captain Holland of the Royal Marine Light Infantry were lent to Burgevine in the capacity of Chief of the staff, and as this was done at the suggestion of the Futai Li—since famous to Europeans as Li Hung Chang—it did not conduce to greater harmony between him and Burgevine, for their antagonism had already become marked. An occasion soon offered to fan this feeling to a flame. A Chinese army under Li and General Ching advanced to attack a Taeping position near Tsingpu, at the same time that Burgevine at the head of his corps assailed it from the other side. The brunt of the fighting fell on the latter, but when Li issued his bulletin he claimed all the credit of the victory, and totally ignored Burgevine and his men. Burgevine did not accept this rebuff meekly, and his peremptory manner offended the Chinese. The breach was widened by the distrust many of the Chinese merchants as well as officials felt as to his loyalty, and soon it was seen that the funds so freely supplied to Ward would not be forthcoming in his case.

Burgevine's character has been described in the following sentence by Gordon himself:—

"He was a man of large promises and few works. His popularity was great among a certain class. He was extravagant in his generosity, and as long as he had anything would divide it with his so-called friends, but never was a man of any administrative or military talent, and latterly, through the irritation caused by his unhealed wound and other causes, he was subject to violent paroxysms of anger, which rendered precarious the safety of any man who tendered to him advice that might be distasteful. He was extremely sensitive of his dignity."

The situation between the Chinese authorities and Burgevine soon became so strained that the former presented a formal complaint to General Staveley, and begged him to remove Burgevine. This, as the English commander pointed out, was for obvious reasons beyond his power, but he made representations to his Government, and suggested that an English officer should be lent to the Chinese, and he nominated Gordon as the best qualified for the work. Pending the arrival of the required authority, the Chinese, assisted by Burgevine's own impetuosity, brought their relations with him to a climax. The merchant Takee withheld the pay of the force; Burgevine was first ordered to proceed with his troops to Nanking, and then, on consenting, the order was withdrawn; some weeks later a fresh order to the same effect was issued, and Burgevine demanded the payment of all arrears before he would move, and thus Li's object of exposing Burgevine as a disobedient officer to the Government that employed him was attained.

The Ever Victorious Army, excited by the absence of its pay, and worked upon by the exhortations of its chief, was on the point of mutiny, and Burgevine hastened to Shanghai to obtain by force rather than persuasion the arrears. On 4th January 1863 he saw Takee, a violent scene ensued, and Burgevine used violence. Not only did he strike Takee, but he carried off the treasure necessary to pay his men. Such conduct could not be upheld or excused. Li Hung Chang made the strongest complaint. Burgevine was dismissed the Chinese service, and General Staveley forwarded the notice to him with a quiet intimation that it would be well to give up his command without making a disturbance. Burgevine complied with this advice, handed over the command to Captain Holland, and came back to Shanghai on 6th of January. He published a defence of his conduct, and expressed his regret for having struck Takee.

Captain Holland was thus the third commander of the Ever Victorious Army, and a set of regulations was drawn up between Li Hung Chang and General Staveley as to the conduct and control of the force. It was understood that Captain Holland's appointment was only temporary until the decision of the Government as to Gordon's nomination arrived, but this arrangement allowed of the corps again taking the field, for although it cost the Chinese £30,000 a month, it had done nothing during the last three months of the year 1862. Early in February 1863, therefore, Captain Holland, at the head of 2,300 men, including a strong force of artillery—600 men and twenty-two guns and mortars—was directed to attack Taitsan, an important place about fifty miles north-east of Shanghai. An Imperialist army of nearly 10,000 men acted in conjunction with it. The affair was badly managed and proved most disastrous.

After a short bombardment a breach was declared to be practicable, and the ladder and storming parties were ordered to the assault. Unfortunately, the reconnoitring of the Taeping position had been very carelessly done, and the attacking parties were checked by a wet ditch, twenty feet wide and six feet deep, of which nothing had been seen. Situated only forty yards from the wall of the town, and without any means of crossing it, although some few did by throwing across a ladder, the storming party stood exposed to a terrific fire. Captain Holland ordered a retreat, but it was not managed any better than the attack. The light guns were removed too quickly, and the heavy ones were stuck so fast in the mud that they could not be removed at all. The Taepings attacked in their turn, and the greatest confusion prevailed, during which the survivors of the larger half of the Ever Victorious Army escaped in small detachments back to Sungkiang. Twenty European officers were killed or wounded, besides 300 Chinese privates. Captain Holland exposed himself freely, but this, his only action in independent command, resulted in complete and unqualified failure. Gordon himself summed up the causes of this serious and discouraging reverse:—