12th.—We have been for three days kept in a state of agitation, by reports that Bahia has fallen, and various rumours attending those reports: they all turn out to have arisen from a russe de guerre of Madeira, who contrived to despatch a small vessel to a port on the coast for flour, pretending that it was for Lord Cochrane, and spreading that report to cover its real purpose.

23d.—A brig, prize to the squadron, arrived, and also the Sesostris, a merchant ship bound to Valparaiso, on board of which were Lady Cochrane and her family going to Chile. Thank God, by putting in here, she has learned where Lord Cochrane is, and is thus spared the tedious voyage, and her excellent husband much anxiety on her account.

14th.—At length we have true news both from and of Lord Cochrane. I wrote to Lady Cochrane, excusing myself on account of illness from going to her, and she kindly called on me as she landed; and a few minutes afterwards I received letters from the Admiral, and from some others in the squadron.

As might have been expected, from the haste in which the squadron was equipped, the ships had to encounter some difficulties at first. Some of the sails and cordage, which had been seventeen years in store, were found almost unserviceable; the guns of some of the ships were without locks, as the Portuguese had not adopted them: the cartridges were mostly made up in canvass: but the real evil was the number of Portuguese, both men and officers, among the crews, which kept them in a continual state of discontent, if not mutiny.

Lord Cochrane had chosen as head-quarters for the squadron, the harbour behind the Moro of San Paulo, about thirty miles south of Bahia, and commanding the channel behind Itaparica; a country well watered and wooded, and in the neighbourhood of all supplies of fresh necessaries. There is good and sheltered anchorage in from seven to twenty fathoms water, and on the whole it was well adapted for its purpose. As soon as it was known that His Lordship was off Bahia, the Portuguese squadron came out, and spread itself along the shore north of the bay. Lord Cochrane, who had waited in vain at the place of rendezvous at sea for the two fire-ships, which he expected from Rio, had fitted one of his small vessels, the schooner Real, as a fire-ship, and had intended to run into Bahia on the 4th of May; when he fell in with the Portuguese fleet, in number thirteen[109], he having with him five ships, a brig, and the fire vessel. He instantly ran through their line, cutting off the four sternmost ships; and had the men done their duty, nothing could have saved the ship they were first alongside of: but they fired too soon; and though the fire did great execution, wounding and killing many, both on board that ship and the Joam VI., which was immediately to the windward of the Pedro, yet the Admiral was disappointed. The slow sailing of the Piranga and Netherohy kept them farther behind the Pedro than their brave commanders wished; the others were forced to keep aloof, it is said, by the conviction that their crews could not be trusted against the Portuguese. As to the crew of the Admiral's ship, two of the Portuguese marines went into the magazine passage, and with their drawn swords impeded the handing up the powder. The squadrons separated after this. Lord Cochrane determined to attack the Portuguese again next day. Captain Crosbie, Lieutenant Shepherd, and eleven others were wounded; but no other damage was sustained by the Imperial squadron, while that of the Europeans had suffered much both in crews and rigging.

On the morning of the 5th, Lord Cochrane looked in vain for the enemy. He had apparently been satisfied with the skirmish of the 4th, and had taken refuge in the harbour; so that His Lordship returned to the Moro de San Paulo, with only the satisfaction of having driven the enemy from the open sea.

Meantime the Brazilian Imperial force that was posted behind the city, taking advantage of the absence of the fleet, and consequently of the two thousand seamen who served the artillery ashore, advanced from the sitio of Brotas, where their centre was quartered, towards the town. Madeira marched out to meet them, and an action took place entirely in favour of the Imperialists; and it is said that the King's fleet was recalled in consequence of this disaster.

Lord Cochrane had no sooner returned to San Paulo than he made such provisions with regard to his squadron, as he judged most prudent for the public service. The vessel that has arrived here has brought down some of the ill-affected Portuguese. All, I believe, from the report of the officer who arrived in the prize, have been dismissed from the Pedro Primero.

Lord Cochrane has taken the officers and English seamen of the Piranga and Nitherohy on board the Pedro, so that now he has one ship he may depend on: he has exchanged the eighteen-pound guns of the main-deck, for the twenty-four pounders of the Piranga, and has placed guns along his gang-ways; and we trust the next news we have from him, we shall learn something favourable to the cause of independence.

As far as the government here could supply every thing to the squadron to insure its success, it was done in the most liberal manner; and the failures, where they occurred, were owing to the peculiar circumstances of the times and country, which admitted of no controul. That some things should have been imperfect was to be expected: that so much should have been done, and well done, excites admiration. But the Emperor appreciates the brave man who commands his fleet; and while that is the case, a difficulty as soon as felt will be obviated.