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