Early in May 1775, while the more cautious Americans were opposing any step that would lead to extremities, Finlay reported that he was on board the ship "King Fisher," and that a vessel manned by sixty resolute fellows was cruising about Sandy Hook, in the hope of intercepting the packet "Mercury," which was due to arrive.[103]

In consequence of the burning of Falmouth by a British naval expedition, letters of marque and reprisal were issued in November by the province of Massachusetts Bay; and in the following March, the continental congress sanctioned the fitting out of private armed vessels to prey upon British commerce.[104] Seaport towns were enjoined that on no account should they furnish provisions to war vessels coming to them.

The ministry were under no delusions as to the situation. At the end of September, the packets were withdrawn from general post office duty, armed as for war, and placed at the orders of the war office. The movements of the packets were clothed with secrecy, and it was only when the vessels were bound for Halifax that the public were notified that a mail was being despatched. From Halifax, the mails were taken by the first opportunity to Boston or New York.

The attitude of the post office to all these preparations for war was very curious. It seemed incapable of understanding why exceptional measures were necessary at that time. A steady murmur of discontent was kept up against the war office. Remonstrance after remonstrance was directed against the commander-in-chief for the detention of the packets beyond what seemed a reasonable delay, and there was continual complaint against the restrictions placed upon the post office.

Until the middle of the year 1776, although the service had been on a complete war footing for some months past, there had been no actual clash between the British and American vessels. The correspondence, however, reveals a state of great anxiety for the safety of the despatches, and as the vessels put out, the masters were placed under strict injunctions to sink the mails if there was any likelihood of capture.

The first recorded engagement in which the packets on any of the North American stations were concerned, took place on the 17th of July. The master of the "Lord Hyde" reported[105] that on his passage from Falmouth to New York, he saw at four o'clock in the morning of that day a ship and a brig three or four leagues distant. They spoke to one another, and then gave chase to the packet. The ship fell out of sight, but the brig followed hard, and at four in the afternoon came up with the packet and began to fire, at the same time running a red English ensign to the topmast head.

The master of the packet, seeing no chance for escape, shortened sail and prepared for action. The brig came up alongside, replacing the English ensign by a flag of thirteen stripes with a small union in it, and without more ado poured into the packet a broadside from eight carriage guns, and a number of swivels and small arms. The packet returning the fire, a warm engagement followed for an hour and a half at a distance of fifty or sixty yards. The brig then bore away. The packet was much shattered in her sails and rigging, but wonderful to relate, the only casualties were the slight wounding of five persons.

The "Sandwich" packet, which left New York on the 20th of August, reported[106] an encounter with a fast schooner bearing the New England colours, a white field with a pine tree in the middle. After some manoeuvring, in which it appeared that the plan of the schooner was to keep in the wake of the packet outside the range of the latter's guns, but near enough to take advantage of the superior weight of her own guns, the packet managed to bring the schooner into an action which lasted for nearly two hours. The rigging, sails and masts of both vessels were much damaged, but the packet came out of the encounter without any person being even wounded.

The third engagement was a more serious affair. The packet "Harriott," on the New York station, was attacked on the 17th of September by a privateer of twelve guns and over one hundred men. The packet, which was armed and equipped in the same manner as the other packets on this station, had twelve guns, but only forty-five men. Of these five were killed, including the captain, and nine were wounded. Through the gallantry of the mate, Spargo, the packet managed to avoid capture. For his good conduct on this occasion, Spargo was made master of the "Harriott."

On the 1st of March, 1778, the "Harriott," in violation, it would seem, of the instructions given to all the masters of packets to avoid a fight, if possible, captured the American vessel "Sea Nymph," of one hundred and twenty tons burden, laden with gunpowder, saltpetre, gun flints and other wares, and brought it into New York.[107]