The Spaniards now felt worried. Our Navy was at one side of Santiago, and our Army at the other. The Spaniards in the city thought our Army was larger than it was, and the word passed round that fifty thousand American soldiers were on the hills. Food was scarce in Santiago; there would soon be danger of starvation. In this state of affairs, Admiral Cervera, taking a wild chance for life and liberty, with the hope of being able afterward to help his countrymen, led his fleet out of the harbor. Sunday morning, July 3d, was clear and beautiful. The cliffs of the harbor, and the old forts, made a fine show under the blue sky. The red and yellow flag of Spain floated, as usual, on top of Morro Castle. Far in the distance the mountain tops showed plainly--a dark line against the sky. The sea was smooth. Our vessels were in place near the mouth of the harbor, though a few were missing. The Massachusetts and some smaller vessels had gone to Guantanamo for coal; the flagship New York had gone eastward to a place where Admiral Sampson could go ashore, for he wished to arrange plans with General Shafter. Commodore Schley had been left in charge of the fleet, and his flagship was the Brooklyn. It was at the western end of our half-circle of ships. On Saturday evening, the night before, some of the men on board the Iowa saw a good deal of smoke rising within the harbor, and thought the Spanish ships might be getting ready to rush out. These men spoke to their captain about the smoke, but the captain thought that the Spaniards were only fixing their fires. The smoke seemed to him no thicker than it had often been before. The men on the deck could not help thinking about the smoke, and tried to ease their minds by making ready the signal, so that it could be run up instantly if the Spanish ships started out. But the night passed away, the signal was not needed, and the men concluded that the smoke really had meant nothing. They never dreamed that the Spaniards would come out in daytime. So it seemed likely that the day would pass quietly. As it was Sunday, not much work was going on. By nine o'clock all the men were dressed in their white clothes, ready for the Sunday morning "inspection." Some of the officers were gloomy, for they had had news about the terrible losses in the Army during the last two days.