Our fat friend, Mr. Macdonald, appeared at the Princes' Town Club one day when I happened to be there, and he, too, gave me anything but cheering news. Nearly every week, he told me, the guns of San Sebastian fired a salute in honour of another victory over the insurrectos. 'They're not showing fight anywhere; the President's troops are scouring the provinces and driving them from place to place, whilst his cruisers and gunboats scour the coast and prevent any arms or ammunition being smuggled ashore.' This made me jolly nervous about Gerald, and very miserable too, for he also had told me that Gerald's rubber plantation had been entirely destroyed in revenge for his taking up arms. It may have served him right, but it was beastly hard luck on the pater, who had bought the place for him.

Of course we seemed to be in the thick of everything, because Prince Rupert's Island was only fifty-two miles from the nearest point on the coast of Santa Cruz, and, as it was the centre of all the foreign trade of the Republic, the revolution, which was going on there, was practically the only thing talked about. By listening to the English merchants and officials talking at the Club we got to know quite a lot about the military position and the chances of the two parties.

You see the Republic of Santa Cruz stretches for almost a hundred and fifty miles along the eastern shore of South America, and is made up of three big provinces.

Starting from the south, there was the province of Leon, with its vast swamps, forests of mahogany, and other valuable trees, and its rubber and cocoa plantations. It was on the northern border of this province that Gerald had his plantation.

The capital and centre of its trade was San Fernando, situated at the top of a narrow inlet of the sea called La Laguna. Most of this trade was in the hands of Europeans, and the town itself was held for the President by a General Moros with about a thousand troops. From what we heard, he didn't worry much about anything, except to loot the Custom House occasionally or take bribes from the merchants and captains of trading-ships. The President always had a 'down' on this province, and hindered its trade as much as he could without stopping it altogether; and, after his old General had had a 'picking' at San Fernando, every ship had to stop at the narrow mouth of La Laguna and pay more dollars. The President had a pretty modern fort there—El Castellar—to make them heave to if they forgot to stop, and directly the revolution started he had given orders that no ships whatever were to be allowed to pass, so you can pretty well imagine how the English merchants cursed. Then northward of the province of Leon came the towering mountain ranges and plateaus of Santa Cruz, arid, and scorched, and dusty, rising almost precipitously from the forests of Leon, and falling again in terrific ridges and chasms into the northern province of San Juan, the eastern slopes falling into the sea as we had seen at Los Angelos. The mineral wealth—copper, gold, and silver—of the Republic was in these mountains, and they absolutely cut off the southern province of Leon from any communication with the northern province of San Juan. There were mountain paths and dangerous mule-tracks, but what I mean is that no armies could possibly assist each other across them, and old Canilla could sit up in Santa Cruz, at the top of his mountain, and jolly well choose his own time to crush any rising in the provinces spread out at his feet, and, so long as his Navy was loyal, could prevent any insurgents from one province getting to the other by sea.

However, there was one thing 'up against' the President. The province of San Juan bred all the cattle and live-stock of the Republic, and he was obliged to keep a big army down in the northern plains to guard them. Once the insurgents got the upper hand in San Juan he would have to depend entirely on importing cattle from the neighbouring Republics or from Prince Rupert's Island—not so much to feed his troops, but Santa Cruz itself.

Now you will have a rough idea how the land lay, and can understand that, so long as his Navy was loyal to him and prevented the two insurgent provinces on either side of him from combining, the President would be cock of the walk.

That was the opinion of nearly every one in Princes' Town, and, though they all favoured the insurgents and wanted them to win, they'd shake their heads and say that old Gerald's chances were pretty bad.

Then came news, from Santa Cruz, that there'd been a great battle fifty miles or so to the north'ard of San Fernando, and that de Costa's insurgent troops had been defeated with great slaughter. There was a rumour going through the Club that Gerald had been killed, but I couldn't find how it had started.

'Don't you worry. All my eye!' my chum 'in the know' said; 'de Costa isn't such a fool as to try a pitched battle yet. Wait for another six months. The President is only trying to bluff the people who are finding the money to keep his end up.' Then he told me something more about that big armoured cruiser La Buena Presidente.