November 21st.—The rebels have abandoned Red Bank, have left 18 pieces of cannon, and blown up the magazine that contained a great quantity of powder. A vast quantity of shot and other stores were found in their works. Lord Cornwallis's army took possession and we are now destroying it. Mud Island is also to be destroyed and the cannon and stores brought to town.¹ This evening the rebels set fire to their whole fleet, except the galleys which, under cover of a dark night stole past the town and went up the river. A brig and sloop attempted to pass, but they were prevented by our batteries and the frigate and ran aground just opposite the town, they were set fire to, and after burning a considerable time blew up. The loss of this fleet of 30 or 40 vessels, some of them considerable size, must be a heavy blow to them, as almost all of them had a great quantity of powder; guns, and stores on board. The explosion of some of these was so immense that the whole town was shook as with an earthquake. By the taking of Red Bank and Mud Island and the extinction of the fleet, the river is now entirely free, and our vessels are coming up to town every tide. The chevaux-de-frise will be instantly removed and in a few days our men-of-war will be before the town. General Pattison and John Williamson's company are landed and are at Red Bank with the army. Our redoubts and lines round the city are finished and are very strong, so much so, that we need not be under the least apprehension of Mr. Washington's attack, though he threatens hard and some of his ragamuffins are firing at our pickets every foggy morning, but are always driven back with loss.