Meanwhile Lord Hastings had come to a decision of no small importance to the future history of British India, which materially contributed to the final pacification of the territories so long misgoverned by the Peshwá. Elphinstone having reported Bájí Ráo's defection in November, made two propositions on the policy to be followed when that prince should be subdued; one, his reinstatement as nominal ruler with reduced authority, and the other, his deposition and the elevation of a member of his family to the Masnad in his stead. Lord Hastings rejected both these alternatives, and came to the conclusion, in December, that the office and authority of the Peshwá were to be abolished and his territories annexed to the Company's possessions.
He was urged to this decision by many considerations. Bájí Ráo had for several years evinced a spirit of inveterate hostility which no treaty could repress nor moderation conciliate; a secret and redoubtable power belonged to the recognised chief of the Maráthá confederacy, placing him in a position which was at once a menace to British interests and a rallying-point to the discontented. Nor did this authority depend upon the extent of territory he ruled, for it originated in the office he held as Peshwá, and as long as he retained it, little hope remained for a permanent settlement in his dominions or where his suzerainty was acknowledged. It was obviously impossible to curtail this influence by treaties or by force, so too would it be futile to transfer it to any