Reaching the Pearl Islands, they supplied themselves with all necessaries, then again sailed to watch for the Plate fleet. For some time they cruised before New Panama, a very fair city, standing close by the sea, about four miles from the ruins of the old town. The country round it was very beautiful, and it was newly walled, with guns pointing seaward. Growing weary of watching, they stood out to sea, and came to an anchor near the island of Taboga. While they lay here a vessel appeared, the people on board of which stated that they had come to traffic secretly with the English. Suddenly, however, about midnight, they were seen to take their departure, and the vessel, bursting into flames, was discovered to be a fire-ship. The vessels slipping their cables, by great exertions put to sea and escaped damage. On their return they were alarmed by observing a fleet of canoes full of armed men steering towards them. Their joy was great when they discovered that the new-comers were a party of buccaneers, mustering two hundred and eighty men, English and French, who had crossed the isthmus on an expedition to the South Sea. About eighty of the former entered with Davis and Swan, and the vessels which had before been captured were given to the remainder. Their force was further increased by another party numbering one hundred and eighty, all British, under Captain Townley. Three other parties shortly afterwards arrived, mustering two hundred and sixty-four men. With a force amounting in all to about one thousand men, they resolved to attack Panama. Before, however, making the attempt, they ascertained from intercepted letters that the Lima fleet was at sea, and they resolved to capture it in the first place. Their squadron now consisted of ten sail, but the _Bachelor's Delight_ and _Cygnet_ were the only well-armed vessels, while the Spanish fleet amounted to fourteen,--two of which carried forty guns, one thirty-six, another eighteen, one eight, and two fire-ships, all supplied with numerous crews. At length, sighting the enemy, they bore down before the wind; but the Spaniards kept close on a wind, and although a few shots were exchanged, succeeded in avoiding their assailants until nightfall. A light was then seen hoisted on board the Spanish Admiral's ship. This was supposed to be a signal for his fleet to anchor. After some time it was lowered, but was again seen to leeward. Consequently the buccaneers steered for it during the night. Great was their disgust when morning broke to discover the Spanish fleet well to windward, a small bark having conveyed the lantern to leeward, and thus placed them in a dangerous position. The Spaniards now got under weigh and bore down before the wind, compelling the buccaneers to retreat.