Next day, 2d July, we had sight of land to the north, which joined the coast already mentioned, having a bay which we named _St Lunario_, across which our boats went to the north cape and found the bay so shallow that there was only one fathom water a league off shore. N.E. from this cape, and 7 or 8 leagues distant, there is another cape, having a triangular bay between, compassed about with shelves and rocks about ten leagues from land. This bay has only 2 fathoms water, but appeared to penetrate far into the land towards the N.E. Passing this cape, we observed another head-land N. and by E. All that night we had very bad weather and heavy squalls, so that we could carry very little sail. Next morning, 3d July, the wind was from the west, and we sailed north that we might examine the coast, where we found a gulf or bay about 15 leagues across, and in some places 55 fathoms deep. From the great depth and breadth of this gulf, we were in hopes of finding a passage through, like that of the _Castles_ before mentioned. This gulf lies E.N.E. and W.S.W. The land on the south side of this gulf is of good quality and might be easily cultivated, full of goodly fields and meadows, quite plain, and as pleasant as any we had ever seen. The north side is altogether hilly, and full of woods containing large trees of different kinds, among which are as fine cedars and firs as are to be seen anywhere, capable of being masts for ships of three hundred tons. In two places only of this side we saw open meadows, with two fine lakes. The middle of this bay is in lat. 47° 30' N. We named the southern cape of this bay Cape Esperance, or the Cape of Hope, as we expected to have found a passage this way.