A letter from Halifax in Nova Scotia, dated July 2, says, “Information being received of some privateers infesting our coasts, a detachment of the Highland battalion1 was, on Tuesday the 18th instant, by order of Gen. Massey,2 embarked on board the Buckram and Washington armed vessels, and proceeded eastward under the command of Lieutenant Charington, of his Majesty's frigate the Diamond.3 On Saturday evening they discovered four sail in Ship Harbour, which, as it was late, they could only block up until the morning, when it was found that the rebels had landed swivels, and were fortified behind a battery of logs. By the information of a Midshipman belonging to the Rainbow,4 who had been taken prisoner by the rebels and retaken by our troops, their numbers amounted to above 100. The troops therefore were landed under cover of the armed vessels guns, who quickly drove the rebels into the woods. They attempted to make a stand at a post about two miles in the woods, where they had previously lodged their provisions, stores, &c. but on the approach of the troops, and firing a few vollies, they were dispersed in great confusion, and one of their Lieutenants and three men found dead on the spot. Forty of them made their escape to Little Harbour, where they accidentally met a privateer, which took them on board. An inhabitant of Little Harbour informed our troops, that several of the party were wounded, and that they lamented much the fate of their remaining comrades, who being dispersed in the woods, and forlorn in that desart part of the world, and many of them wounded, would most inevitable perish through hunger. The four privateers were burnt, and thirty-two swivels, with a number of small arms, and a quantity of provisions and goods they had taken and secured. They belonged to Salem and Marblehead."5