The Sun.
London, England, 1863-03-05 00:00:00

attempt to remedy the evil, and that she was rapidly sink-
ing. Learning this melancholy truth, and observing that
the Alabama was on my port bow, entirely beyoni range of
my guns, doubtless preparing for a raking fire of the deck,
I felt I had no right to sacrifice uselessly and without any
desirable result the lives of all under my command.
" To prevent the blowing up of the Hatteras from the fire
which was making such progress, I ordered the magazine
to be flooded, and afterwards a lee gun to be fired. The
Alabama then asked if assistance was desired; to which an
affirmative aDswer was given.
" The Hatteras was now going down, and in order to
save the lives of my officers and men I caused the armament
on the port side to be thrown overboard. Had I not done
so I am confident the vessel would have gone down with
many brave hearts and valuable lives.

" After considerable delay, caused by the report that a
steamer was seen coming from Galveston, the Alabama sent
us assistance, and I have the pleasure of informing the De-
partment that every living being was conveyed safely from
the Hatteras to the Alabama.

" Ten minutes after leaving the Hatteras she went down,
bow first, with her pennant at her mast head, with all her
muskets and stores of every character, the enemy not being
able, owing to her rapid sinking, to obtain a single weapon.
The battery upon the Alabama brought into action against
the Hatteras mounted seven guns, consisting of four long
32-pounders, one 100-pounder,one 68-pounder, and one 24-
pounder rifled gun.

" The great superiority of the Alabama, with her power-
ful battery, and her machinery under the water-line, must
be at once recognised by the department who are familiar
with the construction of the Hatteras, and her total unfit-
ness for a contest with a regularly built vessel of war,
" The distance between the Hatteras and the Alabama
during the action varied from 25 to 100 yards, Nearly 50
shots were fired from the Hatteras, and I presume a greater
number from the Alabama. I desire to refer to the efficient
and active manner in which Acting-Master Henry Porter,
Executive Officer, performed his duty.
" The conduct of Assistant-Surgeon Edward Matthews,
both during the action and afterwards, in attending to the
wounded, demands my unqualified commendation. I would
also bring to the favourable notice of the department acting
master's mate T. J. M'Grath, temporarily performing duty
as gunner.

" Owing to the darkness of the night and the peculiar
construction of the Hatteras I am able only to refer to the
conduct of those officers who came under my especial atten-

tion; but from the character of the contest an'i the amount
of damage done to the Alabama I have personally no reason
to believe that any officer failed in his duty. To the men of
the Hatteras I cannot give too much praise. Their enthu-
siasm and bravery were of the highest order.
" I inclose the report of Assistant-Surgeon Edward S.
Matthews, by which you will observe that five men were
wounded and two killed. The missing, it is hoped, have
reached the fleet at Galveston. I shall communicate to the
department in a separate report the movement of myself
and command from the time of our transfer to the Alabama
until the departure of the earliest mail from this place to
the United States.

" I am, very respectfully, your obedient servant,
" R. C. BLAKE, Lieutenant-Commanding.
" lion. Gideon Welles, Secretary of the Navy,
Washington, D.C."

By way of New Orleans it has been ascertained

that the Alabama landed 125 of the officers and
crew of the Hatteras at Kingston, Jamaica. The
entire crew did not exceed 140, and of these six
escaped.

The New Orleans Picayune of the 4th has the
following mention of the Florida:—
" The Confederate gunboat Florida was coaling at Ha-
vannah on the 20th ult. She departed next day, the Bio
Bio, hence for New York, via Havannab, leaving at the
same time, but did not molest the latter, owing, it is said,
to a pledge given the Captain-General to that effect. The
San Jacinto pursued the Florida immediately upon her
leaving port, but she eluded her pursuer. A number of other
United States war vessels subsequently went in search of
the Florida, and succeeded in compelling her to take refuge
in Kingston, Jamaica, where she was lying at last accounts.
Among the vessels destroyed by the Florida was a barque
from. New Orleans (name unknown) with a cargo of sugar
and molasses for a Northern port. The purser of the Creole
favours us with the following :
" ' The Florida (rebel gunboat) is reported to have cap-

tured 10 vessels of the United States commercial marine
between their ports and San Juan de los Remedios. All
the United States war vessels in the vicinity of the coastof
Cuba are in pursuit of the audacious depredator, and they
will not catch her.' "
COMMERCIAL INTELLIGENCE.

:From the New York Journal of Commerce of the 17th of
February.)

Money Market, Monday Evening, Feb. 16.

There is freer offering of money, and rates of interest are
in favour of the borrower. Gold opened at 155, and went
up to 1571 in the street. Silver is selling at 148 to 150 for
large amounts, but small sums, and especially worn coin, is
selling all the way down to 140. Old demand notes are
wanted, and bring almost as much as gold. Foreign ex-
change has advanced, but the market is unsettled; bankers'
ster;ing is quoted at 172 to 174. The stock market opened
at stronger rates, not only for fancies, but also for Govern-
ments, which were much stronger, and continued to im-
prove throughout the day.