We sailed from St. Helen's the. 9th of September, in Co~pany with the Euphrates, Artemisia, General Howe, and Success Increase, Transports, under Convoy of the Vulture and Hunter Sloops of War. By the.Attention and Vigilance of our Convoy, we kept Company till the 7th of October, when a violent Storm separated the whole Fleet, leaving not two Ships together. In two Days after we fell in with the Hunter Sloop, and continued with her till the 19th,-when a most impenetrable Fog, which lasted 48 Hours, again deprived us of her Protection. In this Situation, and finding myself approaching the Enemy's Coast, at the Head of only 23 Recruits and four Volunteers, who had never seen any Service, and on whose Obedience alone I could depend, I thought it full Time to take Steps for our Defence in Case of an Attack. I accordingly communicated my Intentions to the Master of the Vessel, and his Inferior Officers, who readily said they would obey myOrders, and give me all the Assistance in their Power, but that they could not answer for the Sailors. Whereupon I immediately assembled the Crew, and, after pointing out to them what was likely to happen, and saying every thing I could to animate them, I told them, that in such an Event, I hoped they would behave like British Seamen. Their answer was, "They were not engaged on such Condition; that if they should be disabled, they had no Claim on Government; and that even if they took a Prize, the first Man of War they met would take it from them." To obviate these Objections, I promised them a pecuniary Reward, and Protection in case they should receive any Hurt; upon which, with the Help of that persuasive Liquor called Grog, they gave me three Cheers, and swore they would not flinch, whatever should happen.

On the 23d, about 40 Leagues off Cape Race, at Four o'Clock in the Afternoon, we saw a Sail to Windward, bearing down uport us. We soon discovered her to be a Rebel Privateer. I immediately ordered every Man to his Station, and we stood our Course. A little after Five o'Clock, she came within 30 Yards of us, on our Larboard Quarter, and, after ordering us to strike, she saluted us with a Broad-side of her Carriage Guns, Swivels, and Small Arms: But being prepared for her, we returned the Compliment so briskly, that in less than an Hour she thought proper to sheer off. In Hopes of getting clear of her under Favour of the Night, we crowded an the Sail we could set; but we soon perceived that she was by much the fastest Sailer, and only lagged a-stern to keep Sight of us till Morning. To prepare, therefore, in the best Manner I could for another Engagement, I ordered up all the Hammocks to barricade the Decks, and after refreshing and encouraging the Men, I kept them on their Arms all night. About four o'Clock in the Morning we saw our Yankee Friend close at our Heels; and considering that by keeping to Windward he would attack our Lee, by which our Deck would be exposed, and his screened from our Fire, we determined to haul up our Courses, and go before the Wind, to be on as equal Terms as possible. This being done, we fired a Gun by way of Signal that we were ready for the Attack. He seemed so disconcerted by this Manoeuvre, that he laid his Sails to the Mast, and took Half an Hour to determine. After which he advanced on our Larboard Quarter, and raked us aft. He then came on our Starboard, and the Dispute was maintained with-equal Keenness on both Sides till 11 o'Clock, when our Antagonist found it necessary to sheer quite off, with the Loss of several Men, and much Damage done to his Vessel. She appeared to be about 200 Tons Burthen, mounted 10 Carriage guns, 12 Swivels, and carried upwards of eighty Men.

It is very remarkable, that we had not a Man killed or wounded, though the Bed9-ing, of which we made a Breast-work, was full of Balls. Several of the Soldiers Muskets were shot to pieces in their Hands, and considerable Damage was done to our Ship and Rigging.

By this Affair, I have had the good Fortune to save 20,000 1. Sterling to Government; and, as the principal Part of .our Loading was Soldiers Clothing, the Rebels are baulked of what would have been a most valuable and seasonable Booty for them in their present ragged Condition.

The Activity and good Behaviour of Capt. Carey, his Officers, and Crew,. cannot be too highly commended on this Ocassion. We had only six Three-pounders, a few Swivels and 11. Sailors.²