separately was a
good deal more than a match for the little _Covadonga_, it behoved her
captain to keep a very sharp look-out for any sign of the enemy,
especially as the gunboat was not fast enough to enable her to rely upon
her speed for safety.

Men were, consequently, posted at the mastheads, with orders to report
directly any sign of a strange ship was seen, and the ship slid slowly
along under the stars, keeping as close in to the land as possible. As
soon as his watch was at an end that night, Douglas, feeling rather
tired after his experience of the previous evening, went down below and
turned into his bunk; and it was not very long before he was in the land
of dreams.

It seemed to him that he had only just fallen asleep when he was rudely
awakened by a commotion up on deck. He lay half awake in his bunk for a
minute or two, and heard men running about overhead, the sound of
excited voices shouting, and then, loud and clear above the uproar, rang
out Carlos Condell's voice giving orders for the men to be called to
quarters and the guns to be cast loose. Evidently, thought Jim, there
was more fighting in the wind. He quickly tumbled into his clothes,
slung his uniform ulster over his shoulders, for the night was cold, and
stumbled up on deck, every pulse in him throbbing with excitement at the
anticipation of another encounter with the enemy.

As he dashed up through the hatchway he cannoned into, and almost
knocked down, his friend Montt, who was rushing forward with orders from
the skipper.

"Hallo, Montt!" Jim ejaculated, "what's the matter this time?"

"Two steamers have just been sighted coming out of Chaneral Bay, and
heading this way," returned the Chilian, breathlessly. "They are
believed to be the _Huascar_ and the corvette _Union_, and it looks as
though they had been up to some mischief in there, for there is a big
glare away to the south-east--there, you can see it for yourself!--which
seems to point to their having set something on fire. But you mustn't
keep me now, my friend, for it is `all hands to quarters and prepare for
action'; and, if it should prove to be as we believe, we shall have a
tough fight to get clear of these two fellows." And the gallant first
lieutenant bustled away to carry out his orders.

Looking in the direction indicated by Montt, Jim could plainly see the
dull, lurid glare of a large fire away to the south-east; and, outlined
sharply against the glow, he cou