She proved to be His Britannic Majesty's sloop of war Penguin, mounting six 32 pound carronades, two long 12's, a 12 pound carronade on the top-gallant fore-castle, with swivels on the capstern in the tops. She had a spare port forward, so as to fight both her long guns a side. She sailed from England in September last. She was shorter upon deck than this ship, by two feet, but she had a greater length of keel, greater breadth of beam, thicker sides, and higher bulwarks than this ship, and was in all respects a remarkably fine vessel of her class. The enemy acknowledge a complement of 132, 12 of them supernumerary marines from the Medway 74, received on board in consequence of their being ordered to cruise for the American privateer Young Wasp. They acknowledge, also, a loss of 14 killed and 28 wounded; but Mr. Mayo, who was in charge of the prize, assures me that the number of killed was certainly greater. Among the killed is Captain Dickenson, who fell at the close of the action, and the boatswain; among the wounded is the second lieutenant, purser, and two midshipmen. Each of the midshipmen lost a leg. We received on board, in all, 118 prisoners, four of whom have since died of their wounds. Having removed the prisoners, and taken on board such provisions and stores as would be useful to us, I scuttled the Penguin this morning, before daylight, and she went down. As she was completely riddled by our shot, her foremast and bowsprit both gone, and her main-mast so crippled as to be incapable of being secured, it seemed unadvisable, at this distance from home, to attempt sending her to the United States. This ship did not receive a single round shot in her hull, nor any material wound in her spars; the rigging and sails were very much cut; but having bent a new suit of sails and knotted and secured our rigging, we are now completely ready, in all (p. 252) respects, for any service. We were eight men short of complement, and had nine upon the sick list the morning of the action. Enclosed is a list of killed and wounded. I lament to state that Lieutenant Conner is wounded dangerously. I feel great solicitude on his account, as he is an officer of much promise, and his loss would be a serious loss to the service.