Two of the American schooners, the 'Dauntless' and 'Sappho,' were in our waters during the early part of the season, and in order to do honour to them, and to give them an opportunity of testing their speed against some of the fastest of our English schooners, as well as to encourage friendly competition between English and American yachts, H.R.H. the Prince of Wales liberally offered a cup to be sailed for by English and American schooners of 100 tons and upwards, on terms and conditions to be arranged by the Royal Yacht Squadron. The Sailing Committee of the Squadron decided that it should be a Challenge Cup, not to become the property of any yacht-owner unless won by him three times, though not necessarily with the same vessel. The course was to be from Cowes round the Shambles Lightship off Portland, and thence round the south side of the Isle of Wight and the Nab Lightship, back to Cowes, about 120 miles. The first race was fixed for June 22, but as it did not suit the convenience of the owners of either the 'Sappho' or 'Dauntless' to remain for it, the race was postponed until the Cowes week, and was sailed on August 5. 'Guinevere,' 295 tons; 'Shark,' 201; 'Pleiad,' 185; 'Gwendolin,' 182; and 'Egeria,' 152, were entered. They were started at 4 o'clock in the afternoon in a nice topsail breeze with the wind W.S.W., which made the race a dead beat all the way to the Shambles. There was some pretty turning to windward down to the Needles; but, as the chronicler of the day remarked, the race soon resolved itself into contests between 'Guinevere' and 'Egeria,' and between 'Pleiad' and 'Gwendolin'; 'Shark,' which had not adopted the running bowsprit, being left far astern. 'Guinevere' passed the Needles first, with 'Egeria' close in her wake, 'Gwendolin' and 'Pleiad' being about 10 min. behind in the order named. Outside the Needles there was a jump of a sea, and the two leaders drew still further away from their competitors. The night was fine, with a clear sky, and so far the breeze held true and strong. The Shambles Lightship was rounded by the 'Guinevere' at 11.20, with 'Egeria' close up to her, then 'Pleiad,' 'Gwendolin,' and 'Shark.' After this it was a run of forty miles to St. Catherine's Point, and as the tide had just turned to the eastward a speedy passage home was anticipated. But oh, the glorious uncertainties of yachting! The wind fell, and 'Guinevere' did not pass St. Catherine's until 6 o'clock the next morning, about three-quarters of a mile ahead of 'Egeria,' and from four to five miles ahead of 'Pleiad' and 'Gwendolin.' Off St. Catherine's they met the ebb tide, and as the wind was light and dead aft the progress to the Nab was slow. With varying luck in wooing the gentle breezes, these two rounded the Nab Lightship together about half-past 10 o'clock; 'Pleiad' and 'Gwendolin,' bringing up a much stronger breeze, were rapidly overhauling them. After rounding, it