The Gujarat districts were taken over by the Bombay government in 1805 and enlarged in 1818. Baji Rao II, the last of the peshwas, who had attempted to shake off the British yoke, was defeated in the Battle of Khadki, captured subsequently and pensioned (1817/1818), and large portions of his dominions (Pune, Ahmednagar, Nasik, Solapur, Belgaum, Kaladgi, Dharwad, etc.) were included in the Presidency, the settlement of which was completed by Mountstuart Elphinstone, governor from 1819 to 1827. His policy was to rule as far as possible on native lines, avoiding all changes for which the population was not yet ripe; but the grosser abuses of the old regime were stopped, the country was pacified, the laws were codified, and courts and schools were established. The period that followed is notable mainly for the enlargement of the Presidency through the lapse of certain native states, by the addition of Aden (1839) and Sindh (1843), and the lease of the Panch Mahals from Scindia (1853). In 1862, North Canara was transferred from Madras Presidency to Bombay while South Canara remained with Madras. In 1859, under the terms of Queen's Proclamation issued by Queen Victoria, the Bombay Presidency, along with the rest of British India, came under the direct rule of the British crown. Henry Bartle Frere (1862–1867) was the first Governor appointed by the Crown. The Governor's council was reformed and expanded under the Indian Councils Act 1861, the Indian Councils Act 1892, the Indian Councils Act 1909, the Government of India Act 1919 and the Government of India Act 1935. The establishment of an orderly administration, one outcome of which was a general fall of prices that made the unwonted regularity of the collection of taxes doubly unwelcome, naturally excited a certain amount of misgiving and resentment; but on the whole the population was prosperous and contented, and under Lord Elphinstone (1853–1860) the presidency passed through the crisis of the Revolt of 1857 without any general rising. Outbreaks among the troops at Karachi, Ahmedabad and Kolhapur were quickly put down, two regiments being disbanded, and the rebellions in Gujarat, among the Bhils, and in the southern Maratha country were local and isolated. Under Sir Bartle Frere agricultural prosperity reached its highest point, as a result of the American Civil War and the consequent enormous demand for Indian cotton in Europe.