The fleet was divided into two squadrons. The second squadron was placed under a vice-admiral. To every captain he gave a commission to practise every species of hostility against the Spanish nation. “You are to seize,” he said, “their ships, wherever you can, whether at sea or in harbor, just as if they were the open and declared enemies of the King of England, Charles II., my master.” He assembled all the captains in his cabin to sign certain articles of agreement. It was stipulated that Morgan should have one hundredth part of all their booty. Every captain should draw the shares of eight men. The surgeons were to have two hundred dollars each, besides their regular share. The loss of both legs entitled one to an addition of fifteen hundred dollars; both arms, eighteen hundred dollars; one hand or one foot, six hundred dollars; an eye, one hundred dollars. Whoever should first pull down a Spanish flag, and raise the English in its stead, was to receive fifty dollars. For a little time, it was debated whether they should attack Carthagena, Vera Cruz, or Panama. The lot fell upon Panama. It was the richest of the three. Though this city was situated on the western or Pacific shores of the Isthmus, and though it would be necessary to leave their fleet in some harbor, and march for several days over an unknown country, still there would be no difficulty in finding guides, the Spaniards would be but poorly prepared for so unexpected an attack, and the amount of booty, particularly in gold and silver, would be immense. Morgan proudly unfurled from his squadron the royal English flag. Upon the other squadron he spread to the breeze the blood-red banner of the pirate; and, strange to say, upon that piratic banner he placed a white cross, the emblem of the religion of our Lord and Saviour Jesus Christ, who came to this lost world proclaiming “Glory to God in the highest, and on earth peace, good will toward men.” CHAPTER XIX. _Capture of St. Catherine and Chagres._ The Defences at St. Catherine.--Morgan’s Strategy.--The Midnight Storm.--Deplorable Condition of the Pirates.--The Summons to Surrender.--Disgraceful Conduct of the Spanish Commander.--The Advance to Chagres.--Incidents of the Battle.--The Unexpected Victory.--Measures of Morgan. On the 16th day of December, 1670, the piratic fleet weighed anchor from Cape Tiburon. They first directed their course to the recapture of the Island of St. Catherine upon the coast of Costa Rica. This island had become a penal colony, the Botany Bay, of Spain. The malefactors from all the Spanish dominions in the West Indies were transported here.