Meantime the Meridional Department was unprotected save by the schooner Granada, lying in the port of San Juan del Sur. During August and September Lieut. Fayssoux had been cruising first about the gulf of Fonseca and then in the gulf of Nicoya, and finally off Realejo; but he had not been able to see anything with a hostile flag. The presence of the schooner at several points on the coast had kept the enemy in constant fear, and the Granada had, in many ways, embarrassed the action of the Allies. As the time, however, for the arrival of the steamer from San Francisco approached it became necessary to send a guard for the specie across the Transit and also to afford protection for the passengers on the Isthmus. Hence Gen. Hornsby was, on November 2d, sent from Granada to Virgin Bay with one hundred and seventy-five men. He reached the Transit just in time to guard the specie brought down by the Sierra Nevada. It was known that a detachment had been sent from Masaya for the purpose of occupying Rivas; while the reports of a fresh force from Costa Rica, with a view of co-operating with the Allies in the Meridional Department, were frequent and continued. Therefore Hornsby was ordered to remain at Virgin Bay with a view of holding the wharf, so that a force from Granada might at any moment be landed; while Fayssoux remained in the port of San Juan del Sur to keep the enemy uneasy in case they attempted the occupation of that place. The log of the Granada shows how she performed her part. On the 7th of November, “At 4.30 P.M.,” so the log reads, “received a notice, dated 4 P.M. at one mile from San Juan, and signed José M. Cañas, commanding vanguard of Costa Rican army, to surrender the post without firing a shot; if I did so the citizens should be protected, if not, no protection would be given; to which I paid no attention. At 5 P.M. Mr. G. Rozet—United States inspector at San Juan—came on board with a message that Gens. Bosque and Cañas were in the Plaza with six hundred Costa Ricans; that they demanded the surrender of the schooner without my firing a shot; if I did not the citizens would not be protected. I replied I would not surrender, but not having the power to drive them from the town I thought it would be prudent to run out of the harbor. At 5.45 P.M. cast loose from the buoy, ran out and lay off the harbor.” Then on the 8th the log proceeds: “Lying-to off the harbor. At 3.30 P.M. received letters from the officer in command of San Juan, Guardio, offering protection to all citizens that would deliver up their arms to him, and from Mr. Rozet praying me not to come in, that if I did all Americans would perish. My answer to Rozet was that I did not intend to come in and for him to say to Guardio that I would not communicate with the enemy. The persons who came off to me reported that the Costa Ricans were looking hourly for a bark and two brigs, the latter armed and carrying troops, the former with provisions and troops.” On the 10th: “At