the Hook. Of the other vessels, the
"Numancia" only was in sight.

The signal men, however, could see black smoke on the horizon; and this
they anxiously watched, expecting momentarily to make out the "Arapiles"
and "Zaragoza." Shortly after daybreak, a thick fog settled down,
completely cutting off the seaward view.

In the signal station were General Grant and several members of the
Safety Commission. The ransom money was in readiness, and the intention
was to pay it over during the morning.

At about eight o'clock, heavy firing was heard from the sea.

It was too far distant to be accounted for by a supposed renewal of the
bombardment by the Spanish ships, even under the assumption that they
had thus broken the truce.

The watchers at the signal station looked at each other in astonishment,
and eagerly waited for the fog to lift.

An hour later, the mist began to clear away. The sight that met the
eyes of the spectators was one never to be forgotten.

The "Numancia" was evidently ashore on the East bank. Her fore and
mainmasts were gone, and clouds of dark smoke were lazily ascending from
her forecastle. Suddenly, the whole ship seemed to burst into a sheet of
flame, there was a deep explosion, the air was filled with flying
fragments, and a blackened hull was all that was left of the proud
man-of-war.

The "Arapiles," about two miles further out to sea, was making a gallant
defense against three strange vessels. Two, lying at short range on her
quarters, were pouring in a fearful fire; the third, which had evidently
been engaged with the "Numancia," was rapidly bearing down upon her,
apparently intending to ram.

Who could the strangers be?

The flags which floated from their mast-heads bore a strong resemblance
to our own, yet they were not the stars and stripes; for the stripes
were replaced by but two broad bands of red and white, and in the blue
field there was but a single star.

"Chili, by Jove!" ejaculated some one in the signal station.

He was right.

The new-comers were the "Huascar," the "Almirante Cochrane" and the
"Blanco Encelada," the three armored vessels of the South American
Republic.

It was the "Huascar" which was now bearing down upon the "Arapiles."

Suddenly, the Chilian monitor was seen to slacken her speed and change
her course.

She no longer meant to ram; the necessity had ceased. At the same time,
the other Chilian vessels ceased firing.

The Spanish ensign on the "