While sparing no exertions to officer and equip a body of sepoy infantry, he seized a Dutch ship, in which he found a sufficient quantity of specie to enable him to attack Madras; he then sent a message to the Count d'Ache not to leave the coast; but the count replied, that he required a recruit of seamen, and must return to France. Alarmed by such a threat, Lally offered him half of his soldiers for the marine service; but deaf alike to threats and entreaties, the count sailed for the Straits of Madagascar on the 1st of September, and left Lally to cope single handed with the British forces. On summoning to his presence M. de Bussy, who commanded the French troops in that extensive region named the Deccan (or Country of the South), and M. Moracin, who commanded at the seaport of Masulipatnam, he found these officers were somewhat influenced by the same pride and disobedience which characterized the conduct of Count d'Ache; and thus, before they would obey, and march against Madras, they required that Lally should embody an additional thousand men. He immediately ordered M. Moracin to return to his post, which the British were approaching. M. Moracin dared to refuse or delay, and taken by surprise during his absence, Masulipatnam was lost to France for ever. In the month of October, Lally, with his slender force, the flower of which was the valiant Regiment de Lorraine, marched without opposition into the extensive district of Arcot (which seven years before had been overrun by Colonel Clive), and after remaining there at free-quarters for five days, marched back to Pondicherry. The army was now totally destitute of pay, and the commissariat had no supply but plunder, while the departure of the Count d'Ache cut off all succour or retreat by the seaward. Though numerous, the troubles of Lally were just commencing. Discouraged and disunited by the naval disasters of d'Ache, the French officers were alternately fired with ardour and depressed by despair. M. de Bussy offered to raise 400,000 livres in three hours, if he was permitted to re-enter the Deccan with a body of troops; but being loth to divide his little force, and believing the result to be incredible, Lally wisely declined. De Bussy then informed him that he had 240,000 livres belonging to the East India Company, which were at his service if _he_ would be responsible for them; but Lally still more wisely declined to compromise his honour by appropriating the money of the merchants to the service of the nation. He resumed his preparations for the siege of Madras while the British fleet was absent from its shore; but this measure was vehemently opposed by the Governor of Pondicherry, M. Duval de Leyrit, who urged the wretched state of the commissariat and the empty military chest. Lally's Irish spirit could ill brook such disputations, and, "pay or no pay," he was for marching at once.