The departure of the fleet was a death-blow to the enterprise. Between two and three thousand volunteers abandoned the camp in the course of four and twenty hours; others continued to go off; and in a few days the number of besiegers did not exceed that of the besieged. All thoughts of offensive operations were now at an end. The question was how best to extricate the army from its perilous position. On the 28th it was determined, in a council of war, to fall back to the military works at the north end of the island, and fortify there, until it should be known whether the French fleet would soon return to their assistance, the Marquis Lafayette setting off with all speed to have an interview with the Count D'Estaing, and ascertain the fact.

General Sullivan broke up his camp, and commenced his retreat that very night, between nine and ten o'clock. Their retreat was not discovered until daylight, when a pursuit was commenced. The covering parties behaved gallantly, making frequent stands. After a series of skirmishes they were pressed back to the fortified grounds on the north end of the island; but Sullivan had already taken post there, on Batt's Hill, the main body of his army being drawn up in order of battle, with strong works in their rear, and a redoubt in front of the right wing.

The British now took post on an advantageous height called Quaker Hill, a little more than a mile from the American front, whence they commenced a cannonade which was briskly returned. Skirmishing ensued until about ten o'clock, when two British sloops-of-war and some small vessels having gained a favorable position, the enemy's troops, under cover of their fire, advanced in force to turn the right flank of the American army, and capture the redoubt which protected it. This was bravely defended by General Greene; a sharp action ensued, which had nearly become a general one; between two and three hundred men were killed on each side; the British at length drew back to their artillery and works on Quaker Hill, and a mutual cannonade was resumed and kept up until night. On the following day (29th) General Sullivan received intelligence that Lord Howe had again put to sea with the design, no doubt, to attempt the relief of Newport.

Under these circumstances it was determined to abandon Rhode Island. To do so with safety, however, required the utmost caution, as the hostile sentries were within four hundred yards of each other. The position on Batt's Hill favored a deception. Tents were brought forward and pitched in sight of the enemy, and a great part of the troops employed throughout the day in throwing up works, as if the post was to be resolutely maintained; at the same time, the heavy baggage and stores were quietly conveyed away in the rear of the hill, and ferried across the bay. As soon as it was dark the tents were struck, fires were lighted at various points, the troops withdrawn, and in a few hours the whole were transported across the channel to the mainland.

The whole army had crossed by two o'clock in the morning unperceived by the enemy; the very next day Sir Henry Clinton arrived at Newport in a light squadron, with a reinforcement of four thousand men, a naval and land force that might effectually have cut off Sullivan's retreat, had he lingered on the island. Sir Henry, finding he had arrived a day too late, returned to New York, but first detached Major-general Sir Charles Grey with the troops, on a ravaging expedition to the eastward; chiefly against ports which were the haunts of privateers. He destroyed more than seventy vessels in Acushnet River, some of them privateers with their prizes, others peaceful merchant ships. New Bedford and Fair Haven having been made military and naval deposits, were laid waste, wharves demolished, rope-walks, store-houses and mills, with several private dwellings, wrapped in flames. Similar destruction was effected at the Island of Martha's Vineyard. Having thus ravaged the coasts of New England, the squadron returned laden with inglorious spoil to New York.

Lord Howe, also, who had sailed for Boston in the hope of intercepting the Count D'Estaing, and had reached there on the 30th of August, found the French fleet safely sheltered in Nantasket Road, and protected by American batteries erected on commanding points. He also returned to New York, and shortly afterward, availing himself of a permission granted him some time before by government, resigned the command of the fleet to Admiral Gambler, to hold it until the arrival of Admiral Byron.

While hostilities were carried on in the customary form along the Atlantic borders, Indian warfare, with all its atrocity, was going on in the interior. The British post at Niagara was its cradle. It was the common rallying place of tories, refugees, savage warriors, and other desperadoes of the frontiers. Hither Brant, the noted Indian chief, had retired after the repulse of St. Leger at Fort Schuyler, to plan further mischief; and here was concerted the memorable incursion into the Valley of Wyoming, suggested by tory refugees, who had until recently inhabited it.

The Valley of Wyoming is a beautiful region lying along the Susquehanna. Peaceful as was its aspect, it had been the scene of sanguinary feuds prior to the Revolution, between the people of Pennsylvania and Connecticut, who both laid claim to it. Seven rural forts or block-houses, situated on various parts of the valley, had been strongholds during these territorial contests, and remained as places of refuge for women and children in times of Indian ravage. The expedition now set on foot against it, in June, was composed of Butler's rangers, Johnson's royal greens, and Brant, with his Indian braves. Their united force, about eleven hundred strong, was conducted by Colonel John Butler, renowned in Indian warfare. Passing down the Chemung and Susquehanna in canoes, they landed at a place called Three Islands, struck through the wilderness to a gap or "notch" of the mountains, by which they entered the Valley of Wyoming. Butler made his head-quarters at one of the strongholds already mentioned, called Wintermoot's Fort, from a tory family of the same name. Hence he sent out his marauding parties to plunder and lay waste the country.

Rumors of this intended invasion had reached the valley some time before the appearance of the enemy, and had spread great consternation. Most of the sturdy yeomanry were absent in the army. A company of sixty men, enlisted under an act of Congress, and hastily and imperfectly organized, yet styling themselves regulars, took post at one of the strongholds called Forty Fort; where they were joined by about three hundred of the most efficient of the yeomanry, armed and equipped in rude rustic style. In this emergency old men and boys volunteered to meet the common danger, posting themselves in the smaller forts in which women and children had taken refuge. Colonel Zebulon Butler, an officer of the Continental army, took the general command. Several officers arrived from the army, having obtained leave to repair home for the protection of their families. They brought word that a reinforcement, sent by Washington, was on its way.

In the meantime the marauding parties sent out by Butler and Brant were spreading desolation through the valley; farm-houses were wrapped in flames; husbandmen were murdered while at work in the fields; all who had not taken refuge in the fort were threatened with destruction. What was to be done? Wait for the arrival of the promised reinforcement, or attempt to check the ravage? The latter was rashly determined on. Leaving the women and children in Forty Fort, Colonel Zebulon Butler with his men sallied forth on the 3d of July, and made a rapid move upon Wintermoot Fort, hoping to come upon it by surprise. They found the enemy drawn up in front of it, in a line extending from the river to a marsh; Colonel John Butler and his rangers, with Johnson's royal greens, on the left; Indians and tories on the right.