Walker wisely gave the most important places in the cabinet to his native adherents. His faithful friends, Don Firmin Ferrer and Mateo Pineda, were appointed respectively Ministers of Foreign Affairs and of War. Don Manuel Carascossa received the Treasury portfolio, and that of Hacienda was given to the Cuban, Don Domingo Goicouria. Hundreds of recruits continued to pour in from California and the Atlantic states. In the Northern departments the Allies also received strong reinforcements, and by the 1st of July they had undisturbed possession of Leon, whence they soon spread over the country, annoying the foraging parties sent out of Granada to collect cattle in the district of Chontales. A detachment of cavalry which Walker sent against them was repulsed near the river Tipitapa, and one of the leaders, Byron Cole, was slain. Cole was the early friend of Walker, and the negotiator of the contract under which the filibusters had come to Nicaragua. Belloso, reinforced by a strong body under command of General Martinez, was now emboldened to advance to Masaya, which he fortified and made the base of operation against Granada, fifteen miles distant.

Xatruch, Jerez, and Zavala were acting with the enemies of their country. Rivas was of little importance among his dubious friends. Salazar, who had been so prominent in inciting the invasion, was captured on the coast of Nicaragua by Lieutenant Fayssoux, and carried a prisoner to Granada, where he was tried for treason, found guilty, and executed.

Fayssoux, the only commander in the navy of the ephemeral republic, was a splendid specimen of the sailor-filibuster. A native of Louisiana, he had seen service in Cuba with Lopez and Pickett. Walker, having confiscated the schooner San Jose for carrying a false register, had her fitted out with some guns and placed her under the command of Fayssoux. Her first exploit was an engagement with the Costa Rican brig, Once de Abril, carrying thrice the armament and six times the crew of the Granada, as the San Jose was now christened. The Costa Rican was blown out of the water after a two-hours' fight, and the Granada remained mistress of the Pacific waters until a heavier antagonist came upon the scene.

The position of the Allies at Masaya was well chosen. It is an eagle's nest, hung high a thousand feet, on the crest of a volcanic upheaval. Half-way down its sides lies the Lake of Masaya, imprisoned within its walls of adamant. To the south lies the lava desert, well named "the Hell of Masaya," barring the road from Granada.

Belloso from his eyrie was wont to swoop down on detached parties of foraging filibusters, or to strike with quick and deadly blow the solitary hamlets whose people might be suspected of a leaning towards the liberal cause. Walker did not need control of the northern districts, and would have been content to leave Masaya and its barren crags in undisturbed possession of Belloso's rough riders, but for the daily waspish annoyance to his foragers and the loss of prestige in the eyes of the conquered Leonese. Characteristically he chose the bold plan of attacking the enemy in his stronghold, regardless of the enormous odds against him. At the head of only eight hundred men he rode out of Granada, on the morning of October 11th, and took the high road for Masaya.

There was a gallant review of the little army, proud in the bravery of new uniforms and waving banners, and under the eyes of wives, sisters, and sweethearts, of whom not a few had followed the flag down to the seat of war. For the filibusters had "come to stay," they boasted. What further ambition they dreamed may not be known; but something was hinted in the device upon the flag of the First Rifle battalion, the corps of one-legged Colonel Sanders, a grim and hard-fighting old colonel withal. It bore, in place of the old-time five volcanoes and pious legend, the filibuster's five-pointed red star, and the motto, in sword-cut Saxon, "Five or None"—a hint to the allied states of new and stronger alliance yet to be.

The march was leisurely and uninterrupted. By ten o'clock at night they halted near the suburbs of Masaya, threw out pickets, and went into camp. It was a glorious tropical night. The early evening had been misty, but night fell without the laggard twilight of temperate zones, and the full moon shone in all her splendour upon a scene worthy the pencil of Salvator Rosa. Before the filibusters' bivouac lay the Lake of Masaya, reflecting the watch-fires of the town. In the distance rose the towering cone of Mount Masaya, clouded in dense volumes of smoke, and grandly indifferent to the puny preparations of the insects about to bring their mimic thunders into play on the morrow. The filibusters lay in groups around their fires, the very flower and perfection of that lost race called the "49-ers." They smoked their pipes tranquilly; they took an occasional sip of aguardiente—but it was a temperate potation, for the General was at hand, and woe betide the luckless wretch who unfitted himself for duty in that dread presence on the eve of battle. They talked of the past much, of the present little, and of the future not at all, save in connection with mining prospects. For it was a religious belief with those queer adventurers that in coming to Nicaragua they had been governed by a marvellous inspiration of good sense. It was to them a question of practical business, they believed; and if its pursuit involved a little incidental fighting, why, that was to be reckoned among the taxes to fortune. Hence they had not wasted their hours in Nicaragua, but had diligently, as their duties would allow, visited every rivulet and hill, and talked knowingly of "indications," and "colour," and other technical lore. Regarding themselves as industrious, if rather enterprising, men of business, they would have resented any intimation of romance or recklessness in their present occupation.

They spoke in a short, terse way which it was the despair of their allies to understand. Ollendorf had furnished the Spanish student with no equivalent for the wondrous vocabulary of California. The Nicaraguan, who uses not over one-fifth of the words in his glorious Castilian inheritance, was at the verbal mercy of the man who possessed a whole mine of phrases unknown to the lexicographers, and who pitied with a fine scorn the ignorant wretch, native or foreign, who knew not the patois of the mining camp. He even improved upon the language of the country, when he condescended to use it, changing such household words as "nigua" or "jigua," into the more expressive "jigger," nor omitting to prefix it with the Anglo-Saxon shibboleth known to all mankind—the watchword which, hundreds of years ago, gave to English soldiers in foreign towns the charming sobriquet of the "Goddams." The prefix was not inapt, for the "jigger" is the most pestiferous parasite of all his race, and a living thorn in the flesh of his victim. Spanish verbs, like "buscar," "pasear," &c., masqueraded with English terminals and marvellous compound tenses, a wonder of philology. Nor did the sonorous native names come forth unrefined from the furnace of California speech. "Don Jose de Machuca y Mendoza" was a style nomenclature altogether too lofty for democratic tongues, which found it easier and much more sociable to pronounce "Greaser Joe." Whatever was to come of the incongruous alliance, for the present there was a touch of nature, a community of courage, which made the parties kin in thought and action. The native, whether friend or foe, was no coward. In endurance he was the peer of his northern rival, though he lacked the physical strength and wild hardihood of the pioneer. The bivouac before Masaya was but one of a score of such.

The enemy, who had kept up a desultory firing through the night, appeared in force at daybreak a few hundred yards away. Walker began the engagement by a general advance on the town under cover of a well-directed fire from his battery of howitzers. In a short time the First Rifles had driven the enemy out of the main plaza, which was immediately occupied by the whole force of the assailants. The position was excellent as far as it went, but the enemy still held two other plazas and the intervening houses, and to dislodge them would have entailed a heavier loss of life than could be afforded. The artillery was accordingly brought up, and sappers were detailed to cut passages through the adobe house walls. Slowly but steadily the work proceeded, the besieging lines converging towards the enemy's stronghold. The day was thus consumed in engineering, with an occasional skirmish in the narrow streets.

While the combatants lay on their arms that night awaiting the morrow which was to see the city in the possession of the invaders, what was happening in Granada? Zavala and eight hundred swarthy Serviles, making a forced march from Diriomio, had entered the Jalteva at noon of the 12th. A scant garrison of a hundred and fifty men, mostly invalids, was all that remained to oppose them; and Zavala, feeling sure of an easy victory, divided his forces so as to surround the little band. The latter were distributed in the church, armoury, and hospital, whither also repaired all the civilians who could, having little confidence in the security of their neutral position. General Fry, commanding the garrison, hastily prepared for a desperate resistance. He had two or three field pieces, which were placed to best advantage and managed by Captain Swingle, an ingenious experimenter, with an enterprising eye to church bells and such raw material.