Friday.—On Friday, the 21st of August, rumours were current through the city that one, if not two ships had been wrecked during the previous night off the entrance to the harbour, and the greatest excitement prevailed in consequence; especially as the reports stated that one of the vessels was the "Vocalist," an emigrant ship with over 500 persons on board. The state of the weather for a day or two past had been such as to justify the most serious apprehensions. The day previous it had been particularly stormy, and the wind had shifted to nearly every point of the compass, having been during the fore part of the day, in the N.E. quarter, with a heavy sea from the eastward. Towards the evening it shifted to the W. and N.W., and by midnight it blew a gale at S., veering to S.E. towards the morning, with a tremendous sea setting in dead upon the land.

The ship "Europa," from Bremen, which arrived in Sydney on Thursday morning, reported having been in company with a large ship for five days off this coast, and a steamer that came in the same day, also gave information of having seen a "large ship" near the land, bearing East; but neither of them could report her name. The steamer "Grafton," Captain Wiseman, from the Clarence River, while entering Port Jackson this morning (Friday), was the first who gave the alarm. Captain W. reported that he had passed, floating between the Heads, numerous pieces of ship timbers, bedding, bales of goods, and other articles, denoting a recent wreck. At about half-past seven a.m., however, Mr. Hydes, one of the pilots stationed at Watson's Bay, perceived indications of a shipwreck in the vicinity, and, in company with another pilot, Mr. Robson, whom he immediately informed of the circumstance, he at once proceeded to examine carefully the rocky coast, and at length discovered the portion of a large vessel ashore between the "Gap" and the Lighthouse; they supposed her to have been of at least 1000 tons burthen, and of American build, the fittings that could be seen being of unpainted white deal, similar to that ordinarily used in emigrant ships, the fastenings of copper, figure head a gilt scroll, masts and bowsprit hooped.

There had been washed ashore a quantity of sundry articles, such as carpeting, hats, candles, silk, children's toys, shirts, prints, clothing, bagging, and linen drapery; but on none of them at this time could any brand be seen by which the name of the vessel could be traced. This could not long continue to be the case. In the course of the day part of the wooden lid of a pickle case, branded — and Co., in half a diamond S over 228; a parchment label, used for luggage on the English Railways, with the address, "Mylne, passenger, Edinburgh;" a handkerchief with the name "Howell;" a lady's night-dress, marked "Dobelle;" and a cabin door numbered 68, were found near the Heads. Tho rumours as to the fact of a dreadful shipwreck having just occurred soon assumed distinct shape and certainty. At length it became generally known in Sydney that numerous dead, and mutilated bodies of men, women, and children, were to be seen floating in the heavy surf at the "Gap," thrown by immense waves to a great height, and dashed pitilessly against the rugged cliffs, the returning water sweeping them from the agonised sight of the horrified spectators. The scene is described by parties present to have exercised a sort of hideous fascination, that seemed to bind them to the spot; while at the fearful spectacle of the remains of fellow beings in so awful a position—immediately before their eyes and yet out of their reach—each determination to leave the fatal locality became overpowered by a desire for farther knowledge, many dreading lest they should have to recognise the familiar face of friend or relative.

While uncertainty continued as to the name of the unfortunate vessel, the most contradictory opinions were promulgated; some averring that she was an Emigrant ship, others, a Merchant vessel, some that she was of North American build, and again others, that she was British; the intense excitement increased, and the road to South Head, notwithstanding the inclemency of the weather, was hastily traversed by hundreds of anxious persons.

Meanwhile, important facts became known at Middle Harbour, appearing to remove all doubts as to the name of the lost vessel; a mail bag marked "No. 2, per Dunbar, Plymouth, May 29"; a cask of tripe marked "Dunbar"; the top of a case, marked J.C.; a quantity of pork; boxes of candles; several boys' cricket bats; and a great quantity of general cargo, were either found floating there, or washed ashore. Captain Pockley, the newly appointed Harbour Master, reported that twelve bodies had been found, one of them evidently an officer, the gilt buttons of his coat marked W.B.W., with a crest; there had also been picked up the body of a boy, about four years of age, quite naked, his hair black. Near the Sand Spit, Middle Harbour, the bodies of two well dressed men, and of a woman, with a ring on one of her fingers, had been taken up by Mr. Isaac Moore; also two or three beer cask heads, with Tooth's brand. A cow, surrounded by sharks was seen floating near this place, and two cows and a horse were here cast ashore. A large portion of the wreck floated into Middle Harbour, (see Engraving) and went ashore at Hunter's Bay, near the residence of Mr. Edwards, where it still lies. It consists of about 40 or 50 feet of the keel, and flooring timber of massive construction, copper fastened, two or three sheets of the copper still adhering to the woodwork. The enormous force with which the ship had been driven ashore is evinced by this relic of her former stately proportions; the powerful teak timbers are rent and shivered at their sides and ends, as though they were of the most fragile material, and the copper bolts, nearly two inches in diameter, twisted like pieces of thin wire; a gangway board, with a lion carved on it, was also picked up.

The energetic and efficient officer, Captain M'Lerie, Inspector General of Police, remained at Middle Harbour until half-past 12 o'clock on Friday night, having arranged for the removal of the bodies that had been found to Sydney on Saturday morning.—A party of mounted police, by his directions, remained to guard the recovered property, and it was rumoured that parties detected in wrecking had been arrested. No reasonable doubt remained but that the ill-fated vessel was indeed the Dunbar, reported in the Home News of the 16th of June, as having sailed for Sydney from Plymouth on the 2nd of that month, with a large list of passengers, comprising many well-known and much respected colonists; and several families in our city were at once plunged into the deepest affliction. It was remarked as a singular circumstance that the blue light of the unfortunate vessel had actually been seen off the coast from Sydney, although not observed by the Pilots; and it was also said that the dog of the lighthouse keeper was noticed to be very uneasy during the night, and had run to the edge of the cliffs and barked loudly. Possibly this may have occurred at the time of the awful catastrophe.

Saturday.—On the morning of Saturday, the 22nd instant, the lingering hopes of those who trusted that the wreck might not be that of the Dunbar were utterly annihilated. It became but too evident even to all, that it was indeed that splendid vessel, and it seemed from many circumstances also sure that she must have struck on the rocks, either at the Gap, or between that spot and the Lighthouse—have been almost instantly dashed to pieces, not a single person being saved to tell the melancholy story.

The following is an amended list of the passengers, so far as it can be ascertained, being compiled from the newspapers of the day:—Mr. and Mrs. Kilner Waller, six children and servant; Mr. and Mrs. A. Meyers, six children and servant; Mr. and Mrs. Samuel Peek; Mrs. Egan, son, and daughter; Mr. Hyacinth Macquoid; Mr. Severn; the two Misses Hunt; Captain Steine, R.N.; Mr. Adrian De Young James; Mr. Downey, architect; Mr. Isaac Simmons; Mr. C. Troughton; Miss Logan and two Masters Logan; Mr. and Mrs. Mylne, and Misses A. and E. Mylne; Mr. C. Davidson; Mr. F. Tyndal. Twenty-four second and third cabin passengers; the crew being about sixty. Of the foregoing, Mr. Kilner Waller was the brother of Mr. J. G. Waller, of Wynyard Square, in this city, and the author of several valuable letters on emigration recently published in the columns of the Sydney Morning Herald. Mr. A. Meyers was the brother of a gentleman of that name at Bathurst. Mr. and Mrs. S. Peek were were well known colonists; Mr. Peek having been for many years a large importer, and formerly in business with Mr. Robert Porter in this city. Mrs. Egan was the wife of Daniel Egan Esquire, M.P. of this city, and accompanied by her relatives, Mr. and Miss Cahuac. Mr. Macquoid was the son of the late Sheriff, who so honourably liquidated his fathers debts—he was accompanied by his friend Mr. Severn. Mr. James was the much lamented and only son of H. K. James, Esq., of this city. This young gentleman had been studying in England, previous to taking holy orders. Mr. Isaac Simmons was the second son of the late Mr. James Simmons, and was returning to the colony to take possession of a large fortune. Miss Logan, and the two masters Logan, were the children of Mrs. Logan, a resident in this city. Mr. Mylnes is believed to have been a squatter of the Northern district. In the second cabin was Mrs. W. K. Brown and child, a Mr. and Mrs. Healing and three children, and also, it is thought, a Mr. Bynon. Mrs. Green, the Captain's wife, was at first supposed to have been lost in this vessel, but there is reason to hope that she did not accompany her husband in this, his last and fatal voyage.

The excitement in the city continued very great all day, and thousands of persons went down to the Heads. The description of what had been so appalling to the gazing multitude on Friday, still remained but too strictly applicable to the same scene in the vicinity of the Gap at the foot of the rocks (see Engraving). To quote the vivid language of the Era Newspaper.—"It was manifest that the ill-fated vessel must have struck when all on board had retired to rest, as the majority of the bodies were in a state of complete nudity or only covered with night dresses.