This exclamation was called forth by a flag, which was run up at the peak, and which proved to be that of the Confederacy as soon as it was spread out to the breeze.

"She is plucky, anyhow," added Christy.

"There is no lack of pluck in the South. But I wonder what she means by setting that rag."

"Beeks, hoist the ensign at the peak," said the captain, and the brilliant banner was spread in the morning air.

"I reckon both sides understand the situation now. I don't know the captain of that craft, but he is an able fellow, and probably got his education in the old navy, and not in the new one, where he is serving now," continued Boxie.

"I think it is easy enough to see what he means," replied Christy. "He ascertained last night that, fast as his vessel is, he cannot outsail the Bellevite; and there is really only one thing he can do, and that is to fight."

The lieutenant had hardly spoken the words before there was a puff of smoke from one side of the chase, and a heavy report came across the water. But the two steamers were still a long distance apart, and the shot fell short, to the satisfaction of the captain. The chase had been obliged to come to in order to bring her gun to bear, and she had lost a little time in doing so. It could be easily seen on board of both steamers that the Bellevite was gaining rapidly on the other.

"Mr. Passford, I am as sure of capturing that vessel as though I had her now, and I do not wish to injure her any more than is necessary," said Captain Breaker, as he sighted the Parrot, and devoted especial attention to her. "She is a very fast steamer, and she will be very valuable in our navy in picking up just such vessels as she is herself."

Perhaps it was impudence for him to do so, but Christy could not help casting his eye along the gun. All possible precautions were taken to secure a correct aim, and then the lieutenant gave the order to "Fire!"

"Hit her, sir!" shouted one of the lookout men aloft, who could see over the cloud of smoke.