CHAPTER III.

VIRGIN BAY, SEPTEMBER THIRD, 1855.

Discontent of the Americans—Sale of the Vesta—March of Muñoz toward Segovia—Movements of Guardiola—Walker’s Plans for Returning to Rivas—José Maria Valle—His Friendship to the Americans—Reports of the Enemy—Departure from Chinandega—Despondency of the People—The Cholera—Valle on the Vesta—Distress of Castellon—Action at Sauce—Death of Muñoz—Sailing for San Juan del Sur—Arrival at San Juan—Parker H. French—Relative Strength of the Democrats and Legitimists in the Meridional Department—Action at Virgin Bay—Good Conduct of the Natives—Results of the Action—Death of Castellon—His Character and Policy—New Director—Contribution Levied—Sources of Revenue—Don Guadalupe Saënz—Rumors of Corral’s Advance—Ambush on Transit Road—Intercepted Despatches—Corral Ready to Treat for Peace—Arrival of Gilman—Re-organization of the Falange PAGE 76