, attacked and defeated a party of their pursuers,
led by Ghatgay himself.

Five battalions of infantry were then sent by Scindia, but Amrud
attacked them boldly, and compelled them to retreat. Negotiations
were then opened, and Amrud, believing Scindia's promises, moved
his camp to the neighbourhood of Poona. But, during a Mahommedan
festival, he and his troops were suddenly attacked by a few
brigades of infantry; which dispersed them, slew great numbers, and
pillaged their camp.

Holkar now joined Amrud Rao, who had escaped from the massacre. The
Peishwa negotiated an alliance with the Nizam. Scindia sent envoys
to Tippoo, to ask for his assistance. Bajee Rao did the same, and
it looked as if a desperate war was about to break out.

All this time, Harry had been living quietly in the Residency,
performing his duties as assistant to Colonel Palmer, who had again
taken charge there. There was no occasion for him to resume his
disguises. The atrocities committed by Ghatgay, in Poona, were
apparent to all; and at present there seemed no possible
combination that could check the power of Scindia.

Colonel Palmer, however, had several interviews with Bajee Rao, and
entreated him to put a stop to the doings of Ghatgay; but the
latter declared that he was powerless to interfere, and treated
with contempt the warnings, of the colonel, that he was uniting the
whole population in hatred of him.

The rebellion under Amrud, and the adhesion of Holkar to it, seemed
to afford some hope that an end would come to the terrible state of
things prevailing; and Colonel Palmer became convinced that Scindia
was really anxious to return to his own dominions, where his
troops, so long deprived of their natural leaders, were in a state
of insubordination. If the Nana were but released from his prison
at Ahmednuggur, something might be done, he said. He might be able
to supply sufficient money to enable Scindia to leave; and the
alarm Nana's liberation would give, to Bajee, would compel him to
change his conduct, lest Nana should join Amrud and, with the
assent of the whole population, place him on the musnud.

"Nana is the only man who can restore peace to this unhappy
country," he said to Harry, "but I see no chance of Scindia
releasing a prisoner whom he could always use to terrify Bajee,
should the latter dare to defy his authority."

Harry thought the matter over that night and, at last, determined
to make an attempt to bring abo