The Peruvian iron-clads Independencia and Huascar appeared off Iquique Harbor on the morning of May 21st, finding there the Chilian gun-boats Esmeralda and Covadonga. The latter on discovering the enemy ran into shoal water, the iron-clads taking a position about 2000 yards away. After a short action, the Covadonga (apparently with the intention of dividing the fire and possibly escaping) attempted to run down the coast, the Independencia giving chase. The Huascar continued to engage the Esmeralda, and notwithstanding the short range, failed to hit her. At length a shore battery drove the Esmeralda into deep water, and before she could commence to manœuvre a shot from the Huascar disabled her engines. The Huascar then rammed her three times, the first two blows being total failures on account of stopping the ship too quick. The third was a success, sinking the Esmeralda with her colors flying. The Covadonga, keeping in shoal water as much as possible, ran for two hours, the Independencia making three attempts to ram her and failing. At the fourth attempt the ship was missed, and the Independencia struck a rock and hung fast. The Covadonga at once turned, and taking a position under the Peruvian’s stern, opened fire on him and forced him to surrender. The Huascar appearing at this time, possession could not be taken, and the Covadonga escaped. Attempts to haul the Peruvian off the rocks proving unavailing, she was fired and burned. In this action the Chilians lost the greatest number of men owing to the sinking of the Esmeralda, but the loss of the Independencia more than counterbalanced it. DUELS. _Monitor and Merrimac, March 9, 1862._ On the morning of the 9th the Merrimac steamed into Hampton Roads to finish the destruction of the wooden squadron which she had attacked the day previous (see page 166). The Monitor having arrived during the night steamed out to meet her after she had approached within gunshot of the Minnesota. After a short engagement at a distance of 200 yards, the Merrimac attempted to ram or force a surrender of the Minnesota, in doing which she ran ashore, and was for a short time exposed to the full broadside fire of the frigate. Getting clear, she again turned to the Monitor, and attempted to ram her, striking a slight ineffectual blow. The Merrimac kept on down the channel, the Monitor chasing for some distance, but hauling out of action when she found her speed and artillery power not sufficient to bring the Merrimac to terms. Casualties on the Monitor, 1 wounded, 2 temporarily disabled by the shock of the projectiles striking the turret against which they happened to be leaning. Action indecisive. _Alabama and Hatteras, January 11, 1863._