12 M. close in the mouth of the harbor. Saw a number of mounted men, and apparently about one hundred and fifty foot soldiers leave the town.” The cause of their departure will appear by returning to the movements of Gen. Hornsby at Virgin Bay. Although the nominal numbers of the infantry at Virgin Bay was 175, their real strength was much less; and when, on the 10th, Hornsby was reinforced by Sanders with 150 rifles and a howitzer under Capt. Dulaney, he was not able to march against the enemy with more than 250 men. Cañas had taken up a position on the hill over which the Transit road passes about a mile beyond the Half-way House toward San Juan del Sur. Just beyond the Half-way House there is a deep cut in the road, and some hundred and fifty yards farther on there is a slight bridge thrown across a deep ravine. The enemy had barricaded near the bridge, and thus commanded a long stretch of the road, flanked on one side by rising ground and on the other by the ravine. Captain Ewbanks, with a detachment of Rifles, turned the right flank of the Costa Ricans defending the bridge; and thus Hornsby was enabled to reach the foot of the hill where the main body of Cañas was posted. When, however, the American general reconnoitred the hill the Costa Ricans occupied, and saw the effect produced on his men by the fire they had just passed through, he deemed it prudent to retire without hazarding an attack. He therefore withdrew to Virgin Bay, and repairing to Granada reported in person to Walker the result of his march against Cañas. It was all-important to keep the Transit clear of any formidable force of the Allies. The enemy were well aware of its importance to the Americans when they styled the Transit the “highway of filibusterism.” Accordingly, on the 11th, Walker repaired with 250 Rifles to Virgin Bay, taking also a howitzer, a mortar, and a squad of sappers and miners. General Henningsen accompanied the force with a view of directing the new corps which had been formed under his supervision. The Artillery had not acted well on the 10th, and the general was anxious for it to redeem its character. Walker landed on the afternoon of the 11th; and marched the same night to the Half-way House, which he reached just before daybreak. After a short rest, the advance resumed its march and had proceeded as far as the cut in the road when the enemy opened fire from the same barricades near the bridge they had occupied on the morning of the 10th. Captain Ewbanks, being familiar with the ground, was ordered to make a large detour to the left, and he thus succeeded as before in dislodging the Allies from their barricades. The whole column then pushed forward without interruption to the foot of the hill where Cañas held his whole force, probably 800 strong.