We carried our prize into the Bay of Panama, and anchored under the island of Tobago on the 14th of May.  Here Captains Dampier and Stradling disagreed, and the quarrel proceeded to such length, that they could not be reconciled, so that at last it was determined to part company, all the men being at liberty to go with which captain they pleased, in consequence of which five of our men went over to Captain Stradling, and five of his men came to us.  We were now informed by the prisoners, that there were 80,000 dollars on board our prize, which had been taken on board at Lima clandestinely, and were concealed at the bottom of the hold in the run of the ship.  But Captain Dampier would not credit this, neither would he wait till we should rummage her to the bottom, lest delay might mar his great designs.  Having, therefore, taken on board a quantity of provisions from the prize, she was dismissed; and we set sail in the St George on the 19th May, leaving the Cinque-ports behind, intending again to proceed for the coast of Peru.

We took a vessel of 120 tons on the 7th June, bound from Truxillo for Panama, and laden with flour, sugar, brandy, and other articles, with some bales of flowered silk.  In her we found a packet of letters, and the first of these we happened to read was from the captain of the ship we had fought off Juan Fernandez, and fell in with again going into Callao.  It was directed to the president of Panama, and stated, “That he had fought with two English privateers off Juan Fernandez, the smaller having only fired eight or ten guns at him, and then fell astern and did not come up again during the fight, as he believed for want of wind; while the large ship fought him yard-arm and yard-arm for more than six hours, killed a great many of his men, and wounded such numbers, that he had landed thirty-two at Lima, each of whom had lost a leg, an arm, or an eye, and he had been nearly taken, as at parting they had given themselves over for lost, not having a sufficient number of men left to defend themselves.”  By other letters, we learnt that the two French ships we afterwards saw near Juan Fernandez had picked up a boat at sea, in which were an Englishman and a dog; had been in at the island of Juan Fernandez, and had taken up our anchors, cables, and long-boats, with all Captain Stradling’s stores, as also his five men and our negro who were left there.  We learnt also, that the Spaniards had fitted out two men of war against us, one of thirty-two, and the other thirty-six brass guns, all twenty-four pounders, each having 350 sailors and 150 soldiers, all picked men, and had been cruizing for us in the Bay of Guayaquil, between point St Helena and Cape Blanco, from the 7th to the 12th.