Zavala found himself, to his great astonishment, repulsed at every point after several hours' hard fighting. In his rage, he wreaked vengeance on the neutral residents who had trusted to the peacefulness of their character or the protection of their government rather than to the rifles of the filibuster garrison. The American minister's house was assaulted, though unsuccessfully. Three of his countrymen, a merchant and a couple of missionaries, were murdered in cold blood. Padre Rossiter, the army chaplain, knew his countrymen, and boldly took up a musket in defence of his life, as did also Judge Basye of the Supreme Court. Honest Padre Vijil took a middle course by discreetly flying to the swamp until the storm was over. Nor did the civilizing mission of the worthy editor of El Nicaraguense prevent him from seeking liberty under the sword. He went back to his desk, the wiser for a broken thigh.
So for twenty-one long hours the siege lasted, while recruits flocked to the side of the assailants, and the little garrison struggled bravely against the fearful odds. To the threats and the promises, alike of the enemy they returned but defiances and the cry, "Americans never surrender!" Renegade Harper, acting as interpreter, assured them that Walker had been annihilated at Masaya, and that Belloso, with four thousand men, was on the road to Granada. No quarter was the penalty if they delayed longer to surrender. But they did delay. The hospital patients limped to the windows and rested their rifles there. The women and children stood by to supply them with cartridges. At night a courier was despatched in hot haste to Masaya. Eluding the enemy's pickets, he made his way along the road, only to meet the advance guard of Walker's returning forces. The news of Zavala's movement had already reached Masaya, putting the loyalty of an ambitious soldier to as severe a test as well might be. To abandon his assured victory for the safety of a hundred or two non-combatants was something of a sacrifice, but Walker did not hesitate a moment. The sacred ties of comradeship were strong in the hearts of those wild men, who, almost without awaiting the word of command, took up the march for Granada.
In a few hours they arrived in the Jalteva, where they were confronted and for a time repulsed by a strong battery placed to bar the way, and well handled by the enemy. The advance guard fell back, as well they might, for the position was skilfully chosen for the defence of a narrow roadway. In the moment of confusion Walker rode up, and pointing to the Lone Star flag which still floated over the church, called for volunteers to succour their beleaguered comrades. The response was a cheer and a fierce charge, led by the commander in person, before which the enemy was scattered like chaff. Following up this advantage, the Americans moved upon the plaza before the church, where stood Zavala and his forces, now themselves on the defensive. But the intrepid resistance of the garrison, followed by the capture of the battery, had utterly demoralized the Serviles, who scarcely struck a blow in their own defence. In mad panic they fled through the city, only to be met in the suburbs by a detachment placed to intercept them.
Barely half of Zavala's army escaped capture or death. Masaya had not been taken, but Walker had achieved a greater victory and inflicted a heavy loss upon the allies. Four hundred of them had fallen in the battle of Masaya, and an equally large number was supposed to have perished before Granada. Walker's loss was less than a hundred killed and wounded in both engagements. Lieutenant-colonel Lainé, a young Cuban aid of the general, was made prisoner at Masaya and shot by his captors, who refused an exchange. Walker was so incensed at this, that, in reprisal, he had two of his prisoners, a colonel and a captain, shot next day, and sent word to Belloso that a heavier reckoning would follow any future acts of atrocity.
With those engagements active hostilities ended for a time. The enemy grew more wary in his movements.
Civil government had not been neglected during the prosecution of military enterprises. An elaborate revision of the constitution and laws of the country was perfected; changes of a most serious nature being introduced. Walker reviews with complacency the laws of his government, especially those affecting the rights of property and the more vital right of liberty. Whether we look with approval or blame upon his course up to this point, it is impossible to excuse acts which in his eyes were not only just but even praiseworthy. A law was passed making "all documents connected with public affairs equally valuable, whether written in Spanish or in English." The American residents who knew both languages could here find an opportunity of outwitting the natives with the purpose, which Walker commends, of having the "ownership of the lands of the state fall into the hands of those speaking English." To further the same end, the military scrip of the republic was made receivable for Government lands sold under forfeit. Still further to aid the same purpose, he passed a law requiring a registry of all deeds; a thing heretofore unknown in the country, as "it gave an advantage to those familiar with the habit of registry." The Spaniards of California have had reason to regret that familiarity in their American neighbours. There is no pretence in all these acts of any higher or worthier purpose than that avowed by their author, viz., the practical confiscation of the lands of the Government for the benefit of his adherents. Finally, on the 22nd of September, "the President of the Republic of Nicaragua, in virtue of the power in him vested," decreed that "Inasmuch as the act of the Constituent Assembly, decreed on the 30th of April, 1838, provides that the Federal decrees given previous to that date shall remain in force, unless contrary to the provisions of that Act; and inasmuch as many of the decrees heretofore given are unsuited to the present condition of the country, and are repugnant to its welfare and prosperity as well as to its territorial integrity; therefore:—
"Article I. All acts and decrees of the Federal Constituent Assembly, as well as of the Federal Congress are declared null and void.
"Article II. Nothing herein contained shall affect rights heretofore vested under the acts and decrees hereby repealed."
The principal decree which this was intended to repeal was an Act of the Federal Constituent Assembly of the 17th of April, 1824, abolishing slavery and indemnifying the slave-owners in the then confederated states of Central America.
Thus the institution of slavery, without any restriction, was reimposed on Nicaragua. Walker, so far from denying that this was the object of the decree, expressly avows it, saying, "By this Act must the Walker administration be judged. If the slavery decree, as it has been called, was unwise, Cabañas and Jerez were right when they sought to use the Americans for the mere purpose of raising one native faction and depressing another. Without such labour as the new decree gave, the Americans could have played no other part in Central America than that of the Pretorian guard at Rome or of the Janizaries in the East, and for such degrading service as this they were ill suited by the habits and traditions of their race." He admits that annexation to the United States was no part of the programme of the American adventurers in Nicaragua, knowing that it could not be constitutionally effected after the passage of a slavery law.