Source.—The Annual Register for 1814.

After the action near Chippawa, General Riall retreated to a position near Fort Niagara, and the American army took post at Chippawa. The British force in Canada had been at this time augmented by the arrival at Quebec of some transports from Bordeaux, conveying veteran troops which had served under Lord Wellington in Spain. On July 25th, General Drummond, arriving at Niagara, found that General Riall had moved forward to the Falls in order to support the advance of his division at that place; and he despatched Lieut.-Col. Morrison with the 39th regiment and detachments of two others, in order that he might, if necessary, act with the united force of the army, against the enemy posted at Street's creek, with his advance at Chippawa. General Drummond, proceeding to join General Riall, learned that the Americans were advancing in great force; and, pushing forwards, he found that the advance of Riall's division had commenced their retreat. He immediately drew up his troops in line of battle, when his whole front was warmly and closely engaged. The Americans gained a temporary advantage, during which General Riall, having been severely wounded, was made prisoner. In the centre, the enemy's repeated and determined attacks were resisted with the greatest steadiness and intrepidity by the detachments of the Royals and King's and the light company of the 41st; and so obstinate was the encounter that the British artillerymen were bayoneted while in the act of loading, and the muzzles of the enemy's guns were brought within a few yards of those of their opponents. The action continued from six in the evening to nine, when there was a short intermission, during which the Americans were employed in bringing up the whole of their remaining force, and with this they renewed their efforts to carry the height on which the British were posted till about midnight. The gallantry with which they were received and their severe losses at length obliged them to give up the contest, and retreat with precipitation beyond the Chippawa. On the following day they abandoned their camp, threw the greatest part of their baggage and provisions into the Rapids, and, having set fire to Street's mills and destroyed the bridge over the Chippawa, continued their retreat in great disorder to Fort Erie. General Drummond estimates the enemy's loss at not less than 1500, including several hundred prisoners; their whole force, rated at 5000, having been engaged. The British force during the first three hours of the action did not exceed 1600 men, and the additional troops under Colonel Scott did not augment it beyond 2800 of all descriptions. Of these, the loss amounted in killed, wounded and missing to 878. In this manner was defeated another attempt of the Americans to penetrate into Canada; respecting which, it cannot escape observation that, although British valour and discipline were finally triumphant, the improvement of the American troops in these qualities was eminently conspicuous.