X. If, _instead of the singular person_ "I am (had)," the _plural_ "We are (had)" is written, it means that the ships in question, if merchantmen, have left port and are _going South_. XI. If neither the first person singular nor plural is written and the communication begins, for instance, "Letter from ... _on_ ..." it means that the ships in question, if merchantmen, have left port and are _gone North_. XII. Any mention of _illness_ means that the ships are _disabled_. XIII. _I am expecting a letter from_ ... _on_ ... means that several German warships (or merchantmen) of different classes (or sizes) have been seen. XIV. _Specimen message_: We are hoping to hear from Newcastle on Sunday. _signed_) CHARLES. _Decoded_, means 7 German warships have been observed outside Newcastle, proceeding South. The week after my arrival, this code had been completed and put into use. I was one evening sitting in the best and most popular restaurant in a certain town. The place was crowded with customers and business was brisk. The walls were decorated with magnificent frescoes by a celebrated German artist. Hundreds of electric lamps added warmth and attractiveness, whilst dreamy valse music from Wald Teufel, given by a German orchestra, seemed to help the digestion. Between bites and sips of German lager I was absorbed in the perusal of an evening news-sheet wherein every belligerent army was reported to be making marvellous forward movements, which, if half true, would have carried them respectively quite through Europe and back again in the course of a few weeks. Whenever my eye shifted from the newspaper to my plate an opportunity offered to note casually my surroundings, as well as my immediate neighbours. Two seats only were vacant. They were located next my own and in due course were occupied by a young naval lieutenant accompanied by an outwardly appearing charming demi-mondaine. The champagne of sunny France soon loosened their tongues. But the more their voices became raised the more absorbed I became in my reading. Presently snatches of conversation drifted my way. The lady was complimenting her gallant upon his patriotism and prowess. He, as the Americans say, was blowing hot air. A listener's difficulty was to sift the substance from the imaginary boasting. Subject matters dealt with were mostly of a frivolous nature, but ever and anon the lieutenant would return to his sea trips and the results from their patrolling. _Inter alia_ he related the number of drifting mines taken up, vessels sighted and submarine visitation, which matters only were of interest to me. Presently he paused, then, sinking his voice almost to a whisper, informed his enchantress that just before his ship entered port, that very afternoon, a German cruiser had been sighted going full steam north and close in shore. He proceeded by giving at length his personal