On the outbreak of war with the French in 1793, he was appointed to the command of the channel fleet in the 2nd post under Lord Howe. Graves' fight with the French Admiral largely contibuted to Lord Howe's victory on the memorable first of June, 1794. For his conduct he was raised to the peerage on the Irish establishment as Baron Graces, received the gold medal and chain and a pension of $1000.00 per year. He was, however, badly wounded in the right arm and was obliged to resign his command.
The French government, in the spring of 1762, sent out four ships of war, 32 officers and nearly 700 troops, under the command of Count D'Haressonville. The squadron under Admiral de Ternay, with the troops and transports, took Bay Bulls on the 24th of June and marched toward the capital. They arrived at St. John's on the 27th , occupied it and remained there until September 20, 1762.
Upon occupying the chief English center, St. John's, the French general set to work repairing the ruined fortifications and erecting fresh defenses on Signal Hill. When the intelligence of the capture of St. John's, Carbonear, and Trinity, and the devastation of the trade and fishery reached England, the English Ministry were loudly and universally blamed for their neglect of the great Chatham's advice about the defense of the colony.
Preparations were at once made on an extensive scale to retrieve their negligence. Fortunately, the governorship of Newfoundland had been entrusted to one of the bravest and most skillful naval officers of the period-- the distinguished Captain Graves.
Graves married in 177, Elizabeth, daughter and co-heiress of Mr. William Piere Williams of Cadhey, Devonshire, and left issue three daughters and a son, Thomas North Graves, who succeeded as Second Baron. After receiving a wound in 1794, Graves resigned his command and had no further service, and then in 1802 he died.
Graves was very regular when it came to defending the colony. He made excellent arrangements, displayed rational judgment, possessed a very broad mind, and was totally free from bigotry. Graves possessed many other qualities such as his undaunted courage and skill.