fleet which captured Fernandina and the surrounding islands, putting an end to the need to blockade the port. On her next cruise, she was assigned to blockade the port of Georgetown, South Carolina. On 10 April 1862, she chased schooner Liverpool of Nassau ashore where she was burned to the water's edge. Schooner Dixie, bound for Nassau with a cargo of 100 bales of cotton, 234 barrels of turpentine, 40 bushels of peanuts, and 3,000 pounds of rice, was captured on 15 April 1862. After returning to port for coal and supplies, Keystone State returned to blockade duty, this time off Charleston. On 29 May 1862 she captured the British steamer Elizabeth, in bound from Nassau with 50 crates of Enfield rifles in cargo. The schooner Cora was taken two days later. Keystone State took schooner Sarah, laden with cotton, and Catalina, off Charleston on 20 June 1862. She captured the schooner Fanny attempting to slip into Charleston with a cargo of salt on 22 August 1862. Keystone State participated in the capture of schooner Annie Dees on 17 November 1862. At dawn on 31 January 1863, Keystone State was at anchor, part of the blockading force off Charleston Harbor. Two Confederate ironclads, CSS Palmetto State and CSS Chicora came out of the early morning fog to challenge the Union ships. They attacked USS Mercedita and succeeded in ramming her, disabling her machinery, and killing several of her crew. They turned next to Keystone State, which was hit by ten shells. At approximately 6 am, a shot ripped into Keystone States steam drum, killing 19 men and wounding a further 20. Since she carried a crew of 163 men, her losses were a quarter of the crew. USS Housatanic engaged the ironclads, which retired to Charleston, but Keystone State was on fire, leaking badly, and had two feet of water in the hold. She was taken under tow by USS Memphis and reached Port Royal, South Carolina, where temporary repairs were made. The ship got underway on 22 February1863 for blockading duty off St. Simons Sound, Georgia. She served there until departing for Philadelphia on 2 June 1863 for permanent repairs. Keystone State was found to be "very much out of order" on her arrival at the Navy Yard and faced months of work. She was decommissioned on 10 June 1863 and her crew given a 10-day furlough. The ship