English vessels hovering on the coast were prepared to supply the Biscayans with arms and ammunition, and general Blake thought himself in a situation to revive the insurrection in that province, and to extend it to Guipuscoa. With this view he detached his 4th division, and five guns, under the command of the marquis of Portazgo, to attack general Monthion at Bilbao. The king getting knowledge of the march of this division, ordered a brigade from his right wing to fall on its flank by the valley of Orduña, and caused general Merlin to reinforce Monthion by the valley of Durango. Bessieres aided these dispositions by a demonstration on the side of Frias, but the combination was made too late. Portazgo was already master of Bilbao. Monthion retired on the 20th to Durango, and Bessieres fell back with his corps to Miranda, Haro, and Puente Lara, having first injured the defences of Burgos. [Sidenote: Correspondence of gen. Leith.] The king took post with the reserve at Vittoria. Marshal Ney immediately abandoned his position on the Ebro, and carried his whole force by a rapid march to Bilbao, where he arrived on the evening of the 26th. At the same time, general Merle’s division executed a combined movement from Miranda upon Osma and Barbaceña. Portazgo being overmatched, occupied the heights above Bilbao, until nightfall, and then retreated to Valmaceda, where he found the third division, for Blake had changed his position, and now occupied Frias with his right, Quincoes with his centre, and Valmaceda with his left. In this situation, holding the passes of the mountain, he awaited the arrival of the Asturians, who were marching by the valley of Villarcayo. All the Spanish artillery remained in the town of that name, being guarded by a division of infantry. Thus the second effort to raise Biscay failed of success. [Sidenote: Journal of the king’s operations. MS.] [Sidenote: Ibid.] In the mean time, O’Neil, following colonel Doyle’s plan before mentioned, entered Sanguessa, and was beaten out of it again, with the loss of two guns. However, the Castillian army approached the Ebro by the road of Soria. General La-Peña occupied Logroña, Nalda, and Najera. Llamas and Caro occupied Corella, Cascante, and Calahorra, and O’Neil took post in the mountains, on the left bank of the Aragon facing Sanguessa. The peasantry of the valleys assembled in considerable numbers, and the country between Zaragoza and the Aragon river appeared to be filled with troops. Marshal Moncey withdrew from the Ebro, and took a position, with his left flank at the pass of Sanguessa, his centre at Falces, and his right at Estella. Ney, leaving Merlin with three thousand men at Bilbao, returned to the Ebro; but finding that Logroña was occupied in force by the Spaniards, halted at Guardia on the 5th of October, and remained in observation. [Sidenote: Journal of the king’s operations. MS.]