During the winter Loudon's activity prevented Frederick from obtaining recruits, provisions, or forage from the principalities or circles of Neiss, Groskau, Frankestien, Strehlen, Neustadt, and Oppelen.
In January he repaired to Vienna, to assist at the councils of war and arrange the plan of the new campaign.
In this year (1761) he was destined by the Court of Vienna to undertake a war of sieges in Silesia, where he was to be supported by the Russians; and on the 10th of March he resumed the command of his division. In April he wrote to the Empress stating that since the 18th instant he had revoked the truce made with General Goltze, and intended to fix his head-quarters at Caretau, a league from Glatz. In May he patrolled the country about Lignitz and Jauer to levy contributions, and eighty-seven of his men were cut off by General Tatter at Rostock. About the 12th May, on Frederick's approach, he retired into Bohemia, by the way of Gattesberg, before eighty thousand men, and on the 6th of June established his head-quarters at Hauptmonsdorf.
Frederick was resolved to act solely on the defensive, being tired of the war.
On the 21st July he was encamped at Pulzen, when Loudon, who occupied the opposite mountains, descended by the defile of Steinkunzerdorf, feigning to attack the fortress of Neiss. This drew Frederick out; and they engaged on the heights of Munsterberg, where a warm cannonade ensued. On the 23rd Loudon encamped at Ober Pomsdorf; "and either from native restlessness, or a habit of commanding detachments, in eight days he changed his position six times; for which no satisfactory reason could be given." On the 17th July the whole of the Prussian army received the communion, and sixty rounds of ball per man.
Loudon's force, after he was joined by General Brettano from Saxony, amounted to eighty thousand men. He was also joined by a column of Russians under General Czernicheff. He received a letter from Maria Theresa, wherein she somewhat needlessly "gave him full power to give or decline battle as he chose; and this power was to extend to all his military operations in general." In the first days of August he transmitted to her a letter which he had received from Frederick of Prussia, and written by his own hand, in which he offered him great sums "if he would agree to act faintly in this campaign." Loudon at the same time sent the Empress a copy of his answer, importing, "that being accountable to God and to his sovereign for his conduct, all the treasures of the earth should not tempt him from his duty to either; and that he begged his Prussian Majesty would make him no more proposals so repugnant to his duty, and so injurious to his honour."
On the 15th August he detached forty-three squadrons of horse to join a Russian column which had passed the Oder; but Frederick met them on their march near Parchwitz, and defeated them, taking all their colours and cannon. These troops were horse grenadiers—the flower of the Austrian cavalry. The march of Loudon to form a junction "with the Russians," say the London papers for 10th September, 1761, "is alone sufficient to raise his reputation as a general as high as even a victory could have done. He had marched seven hours before the enemy had the least suspicion of his design, and had a conference with Marshal Butterlin near this place (Lignitz); on his return from which he narrowly escaped being taken prisoner by the fleetness of his horse, his escort being attacked smartly by a strong detachment of Prussians." The allies afterwards separated; and the Hamburg journals asserted that it "was owing to a pique and jealously between Laudohn and Butterlin about the command, and the open antipathy of their respective troops to each other."
After a long series of marches, manœuvres, and feigned attacks, in which he had completely the better of the great Frederick, Loudon suddenly appeared before Schwiednitz, the ancient and fortified capital of a principality situated among the hills of Lower Silesia. Its walls were manned by a brave Prussian garrison; but, to cut off all succour, Loudon posted twenty battalions on the heights of Kunzendorf, which are so steep that they cannot be taken from any troops who possess them.
Frederick's army, consisting of sixty-six battalions, one hundred and forty-three squadrons, and four hundred and six pieces of cannon, encamped at Bunzelwitz, in a place surrounded by chevaux-de-frize, abattis, mines, and palisades. Loudon made a partial attack upon this formidable post; but, pushing on, he resolved to take Schwiednitz by surprise. Previous to the advance, says an officer of his army, in one of his letters, "his Excellency our general having assembled upon the Limelberg, the troops destined to scale the walls of Schwiednitz harangued them there, and promised them a reward of one hundred thousand florins if the place was taken without pillage.
"'No, no!' exclaimed the Walloon grenadiers; 'lead us on, and we will follow to glory; but we will take no money from you, our father Loudon!'