The Revolution of 1854—Organization of Provisional Government—Grounds of the Contest—The two Constitutions—Democrats and Legitimists—Siege of Granada—Retreat of Jerez—Death of Chamorro—Policy of Honduras and of Guatemala—Lower California Expedition—Its Objects and Purposes—Its Termination—Contracts of Cole with Castellon—Crabb Contract with Jerez—Legality of the Cole Grant of Colonization—Charter of the Vesta—Her Difficulties and final Departure—Her Voyage—State of Parties in June, 1855—Arrival of the Vesta at Realejo—Landing of Passengers—Walker’s Visit to Leon—Castellon and Muñoz—The American Phalanx—Its Organization—Expedition to Rivas PAGE 13 CHAPTER II. RIVAS, JUNE TWENTY-NINTH, 1855. Preparations for the Rivas Expedition—Native Troops—Ramirez and Mariano Mendez—Maximo Espinosa-Departure from Realejo—Landing at El Gigante—Difficulties of the March—Appearance of the Camp—Skirmish at Tola—March from Tola to Rivas—Effect of Scenery on the Americans—Plan of Attack—Action at Rivas—Desertion of Ramirez—Loss of the Americans—Retreat to San Juan del Sur—Embarkation on the Schooner San José—Burning of the Cuartel—Departure for Realejo—Execution of Dewey—Its Effects on the People—Transfer to the Vesta and Return to Realejo—Despatch to Castellon—His Reply-Visit of Mariano Salazar—Castellon’s Anxiety—Americans at Chinandega—Cole and Von Natzmer—March to Leon—Arrival there—State of the Capital—Policy of Muñoz—Danger to the Falange—Necessity for Caution—Counter-march to Chinandega—New Contract with Castellon PAGE 42 CHAPTER III. VIRGIN BAY, SEPTEMBER THIRD, 1855. Discontent of the Americans—Sale of the Vesta—March of Muñoz toward Segovia—Movements of Guardiola—Walker’s Plans for Returning to Rivas—José Maria Valle—His Friendship to the Americans—Reports of the Enemy—Departure from Chinandega—Despondency of the People—The Cholera—Valle on the Vesta—Distress of Castellon—Action at Sauce—Death of Muñoz—Sailing for San Juan del Sur—Arrival at San Juan—Parker H. French—Relative Strength of the Democrats and Legitimists in the Meridional Department—Action at Virgin Bay—Good Conduct of the Natives—Results of the Action—Death of Castellon—His Character and Policy—New Director—Contribution Levied—Sources of Revenue—Don Guadalupe Saënz—Rumors of Corral’s Advance—Ambush on Transit Road—Intercepted Despatches—Corral Ready to Treat for Peace—Arrival of Gilman—Re-organization of the Falange PAGE 76 CHAPTER IV. GRANADA, OCTOBER THIRTEENTH, 1855.