On this particular afternoon, about ten days before Christmas, the young captain, now confident of carrying his prize into the harbor, felt very much relieved and elated by his apparent command of the situation. He knew what a godsend the ship's cargo, which he and Talbot had ascertained to be even more valuable than had been represented, would be to the American army. It might be said without exaggeration, that the success of the great cause depended upon the fortune of that one little ship under his command. Talbot had properly classified and inventoried the cargo according to orders, and was prepared to make immediate distribution of it upon their arrival in port. Both of the young men were as happy as larks, and even the thought of their captured friends did not disquiet them as it might under less fortunate circumstances, for among the captives on the Mellish was a Colonel Seaton of the Highlanders, whom they trusted to be able to exchange for Colonel Wilton, and they did not doubt in that case that Katharine would return with her father. While indulging themselves in these rosy dreams, natural to young men in the elation of spirit consequent upon the events of their short and exciting cruise,--the capture and successful escape of the transport, the apparent assurance of bringing her in, and the daring and brilliant night-action which they had witnessed,--they had neither of them ventured to touch upon the subject uppermost in each heart,--the love each bore for Katharine,--and the subject still remained a sealed book between them. The cruise was not yet over, however, and fate had in store for them several more exciting occurrences to be faced. Seymour, often accompanied by Talbot, and Wilton, always accompanied by Bentley, kept watch and watch on the brief cruise of the transport. On the afternoon of the third day, about three bells in the afternoon watch, or half after one o'clock, Seymour, whose watch below it was, was called from the cabin by old Bentley, who informed him that a suspicious sail had been seen hull down to the northeast, and Wilton had desired that his commanding officer be informed of it. Seizing a glass and springing to his feet, he hastened on deck. "Well, Mr. Wilton," he said to that young officer, proud of his responsibilities, "you keep a good lookout. Where away is the sail reported?" "Broad off the weather bow, sir, due north of us. You can't see her from the deck yet," replied Wilton, flushing with pride at the compliment.