In 1672 war again broke out between England and Holland. The sturdy Dutch having waited anxiously for an opportunity to recover their lost possessions in America, fitted out a squadron of five ships to cruise on the American coast, with instructions to inflict as much injury as possible upon the English colony and commerce. Though the authorities at New York were apprised of this fact, little preparation for defence was undertaken. Governor Lovelace appears to havebeen a moderate, good-natured genius, vastly more interested in trips of pleasure than the affairs of government; hence, he scrupled not to leave for distant parts of the country, though the city was liable to be surprised at any hour with the approach of a hostile fleet. In his absence the fort was left under command of Captain John Manning, a white-feathered hero, fall of pomp and bluster, every way capable of eating a rich dinner and of adjusting a pair of shoulder-straps, though quite incapable of conducting any ordinary correspondence or of resisting an attack.

In February, 1673, a rumor reached the city that the enemy''s fleet had been discovered off the coast of Virginia. The Governor was luxuriating among his rich friends in Westchester. A hasty summons from Captain Manning brought him to the city, where several hundred troops were mustered, but as no enemy appeared they were soon dispersed. In July he planned a trip to Connecticut. (A New York summer vacation.) A few days after his departure, two Dutch men-of-war appeared off Sandy Hook. The affrighted Manning again sent a dispatch to the Governor, and caused the drum to be beaten through the streets for recruits. The only noticeable response was from the Dutch malcontents, who, overjoyed at the sight of the flag of the "fadderlandt," on pretence of doing service, entered the fort and spiked many of the cannon, after which they departed, leaving the chicken-hearted captain to fight his battle on his own line and in his own way. Meanwhile the enemies'' ships advanced in front of the fort, and after some interchange of communications, in which Manning exhibited the greatest imbecility, the city with its fortifications was surrendered without firing a gun in its defence. The pusillanimous conduct of Manning, in surrendering the city without the slightest resistance, was a matter of great mortification to the English people, who then, as now, prided themselves on their military prestige. After the English authority was again established on the island, Manning was arraigned and tried by court-martial for cowardice and treachery, and was convicted. His sword was broken over his head in front of the City Hall, and he was incapacitated from holding any station of trust or authority under His Majesty''s government ever afterward.

The Dutch commanders appointed Captain Anthony Colve Governor, who changed the name of the city to New Orange, and proceeded to reorganize the municipal institutions, conforming them again to those of the fatherland. Expecting an attack from the English to recover their lost territory, Governor Colve with commendable dispatch repaired the palisades, improved the fortifications, and placed the city in good state of defence. But the Dutch were not long allowed to enjoy the fruit of this toil. The treaty of peace signed February 9, 1674, between England and Holland, restored Manhattan to the English crown, and on the 10th of November, 1674, the Dutch Government departed from American soil for the last time.