We return to the events which, during these great transactions, had taken place in Bengal, and other parts of the British dominions in India.

Before the commencement of the war with Hyder, the finances of the Company in every part of India had become a source of distress. The scanty resources of Bombay, which seldom equalled the expenditure of a peace establishment, had not, even with the supplies which had been sent from Bengal, sufficed to save that Presidency from the necessity of draining the channels of loan, and from sinking in arrear so deeply, even with the pay of the army, that the General, in the month of August, 1780, declared it was no longer fit to be depended upon. Even Bengal itself, though it had enjoyed entire tranquillity, and had only contributed to the maintenance of Goddard's army, and to other feeble operations against the Mahrattas, was so completely exhausted, that, in August, 1780, the Supreme Council were again reduced to the expedient of contracting debt; and before the end of the year, when exertions in favour of Carnatic were required, they were obliged to announce to the Directors the probability of a total suspension of the investment.