Communication from San Salvador—Reports from Northern States of Central America—Walker at Leon—Proposal of San Salvador—Effect of Vigil’s Reception at Washington—Arrest of Salazar—Goicouria and Guerrero—Election Decree—Movement at Leon—Flight of Rivas to Chinandega—The Course of the Americans—Ferrer as Provisional President—Election and Inauguration of Walker—Forfeiture of the Schooner San José—The Granada in Commission—Lt. Fayssoux—Cabinet of Walker—The New Administration recognized by Mr. Wheeler—Cruise of the Granada—Capture of Salazar—His Execution—Letter of Manning—Arrest of Dr. Livingston—Course of the American Minister—Hon. Pierre Soulé—Desertion and Fate of Turley—State of the Allies at Leon—Disease and Dissensions—Murder of Estrada—Arrangements with Morgan and Garrison—The Cubans in Nicaragua PAGE 216 CHAPTER VIII. THE WALKER ADMINISTRATION. Necessity for Social Re-organization—Difference of Language—Decree of Forfeited Estates—The Registry Decree—The Slavery Decree—Colonial Systems of Spain and England—Anti-Slavery Feeling in Europe and America—How Produced—Effects on Spanish American States—The Negro in Tropical America—Policy of the Decree—Its Relations to Parties in the United States—The Anti-Annexation Character of the Decree—M. Ange de St. Priest—Interest of Continental Powers—Interest of England—Feeling against the Slave Trade—True Character of the Commerce—Africa and America—Experiments of Hayti and Jamaica—Position of the Slave States—Their Apathy—The Course of the South—Her Proper Policy—Efforts of the Anti-Slavery Parties and Powers—Southern Interest in Nicaragua PAGE 251 CHAPTER IX. THE ADVANCE OF THE ALLIES. The Army in September, 1856—Death of Ubaldo Herrera—March to San Jacinto by McDonald—Attack on San Jacinto by Cole—Death of Cole and Callahan—Reinforcements for Belloso—The Allies march to Managua—State of the American Force at Masaya—Its Withdrawal to Granada—Belloso occupies Masaya—Attack by the Americans—Zavala attacks Granada—Action of the 13th October, 1856—Conduct of the Allies at Granada—Murder of Lawless—Other Murders—Treatment of the American Minister—Shooting of Lainé—Execution of Valderraman and Allende—Arrival of Henningsen—His Appointment as Brigadier General—State of the Meridional Department—Lieut. Fayssoux and the Granada—Action of the 10th November—Action of the 12th—Effects of these Actions—March to Masaya—Fighting there—Return to Granada PAGE 281 CHAPTER X. THE RETREAT FROM GRANADA.