A challenge was given this year by Mr. Baldwin, of New York, on behalf of the American schooner 'Sappho,' 310 tons, which was promptly taken up by the schooners 'Aline,' 215 tons, and 'Cambria,' 188 tons, and the cutters 'Oimara,' 165 tons, and 'Condor,' 129 tons, and a race was arranged round the Isle of Wight under the direction of the Royal Yacht Squadron. It took place in August, after the Cowes week. The yachts were started to the eastward at 10 A.M. before a light north-westerly breeze. In the run and reach to the Bembridge Ledge Buoy all the English vessels were ahead of the 'Sappho' except the 'Oimara.' Just after rounding the buoy 'Sappho' carried away her martingale, and a little further on the 'Oimara' carried away her big topsail-yard. It was now a beat to St. Catherine's against tide, and 'Oimara' soon passed 'Sappho.' At 1 hr. 15 mins., when 'Sappho' was going about under Ventnor cliffs, she carried away her jibboom, which destroyed any winning chance she might otherwise have had. After rounding St. Catherine's the yachts were all able to lay their course for the Needles, which were rounded in the following order:--'Oimara,' 'Condor,' 'Cambria,' 'Aline,' and 'Sappho.' In the run back to Cowes against an ebb tide the two schooners got ahead of the cutters, the order of arrival being 'Cambria,' 6 hrs. 17 mins. 50 secs.; then the 'Aline,' 'Oimara,' and 'Condor,' the last being 7 mins. behind the leader. The 'Sappho' did not get in until nearly an hour and a half after the leader. The breaking of the 'Sappho's' jibboom was unfortunate, but before the accident it was made tolerably clear that in a light wind the English vessels had the heels of her, both with the wind free and sailing close hauled. In 1869 Count E. Batthyany brought out the 'Flying Cloud,' 75 tons, which in his hands proved to be one of the fastest of the smaller class of schooners. The old 'Alarm' was also again in commission, and with such a fleet of schooners as 'Guinevere,' 308; 'Alarm,' 243; 'Witchcraft,' 221; 'Aline,' 216; 'Pleiad,' 205; 'Cambria,' 188; 'Egeria,' 156; 'Pantomime,' 151; 'Siesta,' 127; 'Gloriana,' 133; 'Flying Cloud,' 75; 'Amy,' 72; and others, the racing could not fail to be keen and interesting.