Late in the afternoon of the same day the schooner left San Juan, her passengers recognized the Vesta at a distance bound northward, and apparently for Realejo. After the brig saw the schooner, her movements became mysterious and uncertain; in fact she did not know what to make of a vessel showing Costa Rica colors, and clearly looking out for, and in chase of the Vesta. The San José, however, soon overhauled the brig, and in a few moments the Falange was again aboard of their old acquaintance. The wind was favorable; the Vesta kept on her course for Realejo, and the schooner followed close in her wake. Alvarado, no doubt, thought it was fair, and by his civility he had made it safe for him to carry on a little smuggling, and pay himself out of the pockets of the Leonese for the services he had rendered their friends. Early the next morning, it being the first of July, the Vesta again found the volcano of Viejo bearing due north, and letting her cable slip, she stood at her former anchorage opposite Point Ycaco. A few stragglers from the force of Ramirez, taking the coast trail from Rivas to Chinandega, had already reached the latter place, and reported some of the incidents of the march and action on the 29th. Therefore the Vesta had been but a few hours in port, when three or four of the principal Democrats of Chinandega came down to get the news of the expedition to the Meridional Department. On their return with the flood-tide—for whenever a boat was sent up the river to Realejo, it was generally on the incoming tide—one of these gentlemen bore to Castellon the written report of occurrences at the south. In his report, Walker stated his impression that Muñoz had acted in bad faith, and that the conduct of Ramirez was due to the inspiration, if not orders, of the commander-in-chief; and the report concluded by informing the Director that, unless the course of Muñoz was inquired into, and cleared of the suspicions hanging about it, the Americans would be compelled to leave the service of the Provisional Government, and seek elsewhere than in Nicaragua a field for their faculties and enterprise. The next day Dr. Livingston, an American, long resident in Leon, brought Castellon’s reply to Walker aboard of the Vesta. The Director complimented the Americans on their conduct at Rivas, thanked them for the services they had rendered the democratic cause, but evaded saying anything in reference to the acts of Muñoz. He urged Walker, however, not to think of leaving Nicaragua, as such an event might be fatal to the Provisional Government; and Dr. Livingston was sent to urge verbally the same views, intimating, too, that the critical position of the democratic party made it inexpedient for the Director to scan too closely the conduct of the commander-in-chief. Walker, however, appeared obstinate, having decided in his own mind to remain some days on the brig for the purpose of allowing the Americans to recover from their fatigues and wounds, and