The Committee had information that the British frigate "Persius," of 32 guns was cruising singly on the coast of South Carolina. Barry was then ordered as soon as his ship was cleaned to extend his cruising ground so as to cover the coast of that State, taking the "Deane" or other vessel with him in search of the "Persius" and endeavor to "take, burn, sink or destroy" the said frigate or any other of the enemy's vessels "that he might fall in with." If he made a capture he was to take it to Charleston and there fit, man her and take her on the cruise with him.

This order, sent to Hampton, Virginia, did not reach the "Raleigh" as, on September 25, 1778, she had sailed from Boston convoying a brigantine and sloop. That day and the following, two British frigates were seen but avoided. The next day—Sunday—the frigates chased the "Raleigh" from nine in the morning until five in the afternoon when, nearing each other, the "Raleigh" hoisted her colors and the headmost frigate "hoisted St. George's ensign." "We gave her a broadside which she returned, tacked and came up on our lee quarter and gave the "Raleigh" a broadside," which carried away its foretopmast and mizzentop gallant mast, which, to "the unspeakable grief" of Captain Barry, caused him, "in a great measure, to lose command" of the "Raleigh," "determined to victory" as he was. "The enemy plied his broadsides briskly, which was returned as brisk," though the "Raleigh" "bore away to prevent the enemy from raking us." The British sheered off and dropped astern. During the night Barry perceived the stern-most ship gaining on us very fast and, being disabled in our sails, masts and rigging and having no possible view of escaping, Captain Barry, with the advice of his officers, ran the "Raleigh" on shore to prevent her falling into the hands of the enemy. The engagement, however, continued "very warm until midnight"—a five-hours' contest, when the frigate sheered off to wait the consort. The "Raleigh's" mizzentopsail had been shot away. Captain Barry ordered the other sails cut loose from the yards. The two frigates appeared and endeavored to cut the "Raleigh" "from the land." The headmost ship proved a two-decker of at least fifty guns. The "Raleigh," "not in the least daunted, received their fire, which was very heavy, and returned ours with redoubled vigor."

"Encouraged by our brave commander, we were determined not to strike," related one of the officers. "After receiving three broadsides from the large ship and the fire of the other frigate on our lee quarter," the "Raleigh" struck the shore, when the enemy poured in two broadsides, which were returned. She then hove in stays, our guns being loaded gave us a good opportunity of raking her, which we did with our whole broadside. After that she bore away and raked us and both British frigates kept up a heavy fire in order to make us strike to them, which we never did. They ceased and came to anchor a mile distant from the "Raleigh."

The island on which the "Raleigh" struck was uninhabited and being rocky could not be fortified for the defense of the ship. The enemy kept up an incessant fire on her and the men being exhausted after the long contest with the two frigates, Captain Barry ordered the men to land and the "Raleigh" to be set on fire. The eighty-five men were landed, but the treachery of Midshipman Jesse Jaycockt, an Englishman, who extinguished the fire, prevented the destruction. The other officers and men were made prisoners before the boats could return to take them off.

This "unequal contest with two ships was fought with great gallantry and though Captain Barry lost his ship he gained laurels for himself and honor for his country. Perhaps no ship was ever better defended," wrote John Brown, Secretary of the Navy Board at Boston to the Marine Committee of Congress, adding, "Captain Barry's conduct is highly approved and his officers and men are greatly pleased with him."

"His good conduct and bravery are universally allowed," said the Pennsylvania Post.

Captain Barry "fought with his usual bravery. His officers and men being sworn not to surrender, our brave Captain Barry avoided violating his oath by running the 'Raleigh' ashore," wrote Colonel John Laurens to his father.

The British frigates were the "Experiment," of 50 guns, and the "Unicorn," of 22 guns, or 72 guns against Barry's 32. The latter had ten men killed and was greatly damaged in hull and rigging in the contest of nine hours duration. The "Raleigh" lost twenty-five killed and wounded. The ship was added to the Royal Navy under the same name. This battle took place off Seal Island, or Fox Island, in Penobscot Bay.

Cooper's History of the Navy said, "Captain Barry gained credit for his gallantry on this occasion."

"A noble and daring defence," said Watson's Annals of Philadelphia.