leagues to the N.E. sending our surgeons on board the prize to dress her wounded men.  We same to anchor in the harbour about four p.m. where we received the compliments of all on board the Marquis on our sudden and almost unlooked-for success, which gave us all much satisfaction.  We found that ship in good condition and ready to sail, and all on board her in high spirits, eager for action.  At eight the same evening we held a consultation on two important points:  first, what we should do with our hostages; and, secondly, how we should act in regard to the other Manilla ship, which we still thought there was a strong probability of our taking, if we could remain here a little longer.  As the hostages from Guayaquil, and the Chevalier Pichberty, brother to the famous Monsieur du Cass, appeared to be men of strict honour, we thought it was best to make the best terms we possibly could with them, and then set them at liberty.  We had more difficulty in settling the other point in discussion, as to the mode of attacking the other Manilla ship.  I was desirous of going out along with the Marquis on that service; but as some reflections had been cast on the Duchess for not engaging our late prize so soon as it was thought she might have done, Captain Courtney was absolutely bent on going out with his own ship and the Marquis, and having a majority in the committee, my proposal was overruled, and we in the Duke were reluctantly constrained to remain in harbour.  It was agreed, however, that we should put ten of our best hands on board the Duchess, the better to enable her to engage the great Manilla ship, if she were fallen in with; and she and the Marquis sailed on Christmas-day.  As soon as they were gone, we put part of the goods from our bark into the prize, in order to send away our prisoners in the bark; and as there were still due 4000 dollars of the Guayaquil ransom, we agreed to sell them the bark and her remaining cargo for 2000 dollars, taking the Chevalier de Pichberty’s bill for 6000 dollars, payable in London, which he readily gave us, together with an acknowledgment under his hand that we had given him a good bargain.  This matter being settled, we had only to look to our own safety while our consorts were out on their cruize for the Manilla ship.  We posted two centinels on a hill, whence they had a clear view of the sea, with instructions to give us notice by a signal whenever they saw three ships in the offing, that we might have time to secure our prisoners, and to get out to the assistance of our consorts, as we expected they might have hot work, this other Manilla ship being much stronger and better manned than the one we had taken, and better provided in all respects.