At half-past ten a white flag was hoisted at the Pharos battery, and all on board watched, with deep anxiety, what was to follow. Lieutenant Lambton at once steamed into the fort, in the Bittern, to enquire if the government were ready to surrender. It was three o'clock before he steamed out again, with the news that his mission was fruitless; and that the white flag had only been hoisted, by the officer in command of the fort, to enable himself and his men to get away unmolested. Lieutenant Lambton had obtained an interview with the military governor, on behalf of the government, and told him that we were not at war with Egypt, and had simply destroyed the forts because they threatened the fleet; that we had no conditions to impose upon the government, but were ready to discuss any proposal; and that the troops would be allowed to evacuate the forts, with the honour of war.

It was most unfortunate that the fleet had not brought with them two or three thousand troops. Had they done so they could have landed at once, and saved a great portion of the town from destruction; but as he had no soldiers, the admiral could not land a portion of the sailors, as the large Egyptian force in the town, which was still protected by a number of land batteries, might fall upon them.

At five o'clock the Helicon was sent in to say that white flags would not be noticed, unless hoisted by authority; and if they were again shown, the British admiral would consider them the signs of a general surrender. It was a long time before the Helicon returned, with news that no communication had been received from the enemy, that the barracks and arsenals seemed to be deserted and, as far as could be seen, the whole town was evacuated.

As evening wore on, fresh fires broke out in all parts of the town, and a steam pinnace was sent ashore to ascertain, if possible, the state of affairs. Mr. Ross, a contractor for the supply of meat to the fleet, volunteered to accompany it.

The harbour was dark and deserted. Not a light was to be seen in the houses near the water. The crackling of the flames could be heard, with an occasional crash of falling walls and roofs. On nearing the landing place the pinnace paused, for two or three minutes, for those on board to listen; and as all was quiet, steamed alongside. Mr. Ross jumped ashore, and the boat backed off a few yards.

A quarter of an hour later, he returned. That quarter of the town was entirely deserted, and he had pushed on until arrested by a barrier of flames. The great square was on fire, from end to end; the European quarter generally was in flames; and he could see, by the litter that strewed the streets, that the houses had been plundered before being fired.

When daylight broke, a number of Europeans could be seen, at the edge of the water, in the harbour. Boats were at once lowered; and the crews, armed to the teeth, rowed ashore. Here they found about a hundred Europeans, many of them wounded. When rioting had broken out they had, as arranged, assembled at the Anglo-Egyptian Bank. They were taken off to the merchant steamers, lying behind the fleet, and their information confirmed the worst forebodings of the fugitives there.

When the first gun of the bombardment was fired, Gregory had gone up, with the other employees, to the top of the house; where they commanded a view over the whole scene of action. After the first few minutes' firing they could see but little, for batteries and ships were, alike, shrouded in smoke. At first, there had been some feeling of insecurity, and a doubt whether a shot too highly aimed might not come into the town; but the orders to abstain carefully from injuring the city had been well observed, and, except to the Palace and a few houses close to the water's edge, no damage was done.

Towards evening, all those who had resolved to remain behind gathered at the Anglo-Egyptian Bank, or at Mr. Ferguson's. But a consultation was held later, and it was agreed that next morning all should go to the bank, which was a far more massive building, with fewer entrances, and greater facilities for defence. When the town was quiet, therefore, all were employed in transferring valuable goods there, and the house was then locked up and left to its fate. Against a mere rising of the rabble the latter might have been successfully defended; but there was little doubt that, before leaving the town, the troops would join the fanatics; and in that case, a house not built with a special eye for defence could hardly hope to hold out, against persistent attack.

The bank, however, might hope to make a stout defence. It was built of massive stone, the lower windows were barred, and a strong barricade was built against the massive doors. A hundred and twenty resolute men, all well armed, could hold it against even a persistent attack, if unsupported by artillery.