, he addressed
them at some length.

From the first formation of a Carlist force in Navarre, the men had been
in the habit of receiving two reals, about fivepence sterling, a-day.
This rate of pay had been established by General Santos Ladron, and
continued by Iturralde, with the view of attracting volunteers. The
necessary funds had hitherto been supplied from certain moneys that had
been found at the beginning of the war in the hands of various
subordinate administrations. These funds, however, were now nearly
exhausted, and Zumalacarregui's first announcement to the soldiery was,
that he should reduce their pay one-half till times were better.
Considering the circumstances under which he had assumed the command,
this was a bold step. Most generals would have sought rather to
conciliate their men by an increase than to risk exciting discontent by
a reduction. Nevertheless, owing to Zumalacarregui's tone of mingled
firmness and conciliation, this alteration was made without exciting a
murmur.

Releasing Iturralde from his arrest Zumalacarregui appointed him second
in command, whilst Sarasa cheerfully descended to the third
place--thereby proving that in what he had done in favour of
Zumalacarregui, the good of the cause he had espoused was his only
motive. The command in chief, however, was merely _ad interim_. On the
arrival of Colonel Eraso, who was then detained in France, it was to be
given up to him. But when Eraso made his appearance, so convinced was he
of Zumalacarregui's superiority of talent, that he insisted, in spite of
the latter's urgent entreaties, in taking only the second post.

Upon assuming the command, Zumalacarregui at once determined on adopting
a defensive system of warfare--the only one, indeed, that was
practicable with his wretched resources and handful of men. Just at that
time General Sarsfield was marching with a strong column to the scene of
the insurrection; and at his approach the Castilian Carlists, under
Merino and Cuevillas, fled and dispersed to their homes. Sarsfield moved
on, and occupied Vittoria with little opposition. Soon afterwards
Zumalacarregui, who had betaken himself to the banks of the Ebro in
hopes of seizing some arms and horses, received an urgent summons to
repair to Bilboa, then held by the Royalists, and which Sarsfield was
advancing to attack. He hastened to obey the call, but only arrived at
that extremity of Navarre nearest to Biscay, in time to meet the remna