In 1623 news came of the equipping by the West India Company of an expedition whose destination was manifestly to be Bahia. The Spanish government took no measures for defence. The local authorities half-heartedly began to fortify the city, but there were no troops except militia to man the works, and when the Dutch fleet hove in sight a panic ensued. The governor was captured, but many of the inhabitants fled into the back country, and a guerrilla warfare was kept up which shut up the Dutch inside the fortifications. They made use of their time in improving the defences, and soon made Bahia the best fortress in South America. The news of the capture created consternation in Lisbon. Great exertions were made by the Portuguese merchants, as well as by the Spanish government, and the most formidable armament which up to that time had crossed the equator was prepared. It was composed of fifty-two ships and of twelve thousand men--the latter being mercenaries gathered from every country in Europe. The Dutch commander had not yet been re-enforced and made little resistance when such an overwhelming force arrived in Bahia harbour. He surrendered with the honours of war and the Spanish fleet retired. In a few weeks another Dutch fleet appeared, bringing provisions and re-enforcements. It was too late, however, and the Dutch did not venture to attack an enemy whom they themselves had furnished with such excellent re-enforcements. The Dutch, driven from the land, remained undisputed masters of the sea, and the Spanish and Portuguese could no longer trade except in convoys. In 1627 the celebrated Piet Heyn--the Dutch Sir Francis Drake--sailed boldly into Bahia harbour, and despising the fire of the forty guns of the forts, captured twenty-six ships within pistol-shot of the shore cannon. He ran his own ship right in between the two best Portuguese men-of-war, the forts did not dare fire for fear of wounding their own men, the Portuguese flagship was sunk, and the rest surrendered in terror. Among the spoils were three thousand hogsheads of sugar, which Piet Heyn sent home at his leisure, while he ravaged the shores of the bay. The following year he fell in with the Mexican treasure fleet and captured it bodily. This was the greatest capture ever made at sea. The West India Company declared a dividend of fifty per cent. after paying the expenses of the unsuccessful Bahia expedition, and resumed its plans of conquest with more vigour than ever. [Illustration: OLD FORT AT BAHIA.]