ly before six o'clock
in the morning, at the southern defenses. It was replied to, in less
than three minutes, by the Europa batteries, and very shortly the
engagement became general. The plan of tactics employed by the
squadron was that of steaming rapidly up and down, and concentrating
their fire in turn on the various shore batteries. Later on, the whole
squadron assembled off Europa Point, and fired broadsides by
electricity as they steamed past at speed. The spectacle at this
moment was a very fine one, the roar of the heavy guns of the ships
being supplemented by the sharp, rapid report of the quick-firing
guns, which were supposed to be sending a storm of small shell among
the defenders of the Rock. The incessant rattle of the ships' machine
guns was also heard in the intervals between the thundering broadsides
of heavy ordnance. All the ships were, of course, cleared for action,
with topmasts and yards sent down, and it is needless to say they
looked exceedingly workmanlike and formidable.

The various batteries on the Rock replied with great vivacity, and the
general effect produced as gun after gun was brought to bear on the
ships, and the white smoke wreathed itself round the many crags and
precipices of the grim old Rock, was a sight long to be remembered.
The exercise afforded to both branches of the service was undoubtedly
most instructive. Our illustration is a sketch by Captain Willoughby
Verner from one of the batteries above the Europa Flats, at which
point the governor took up his position to watch the operations.
--_Illustrated London News._

* * * * *

GIBRALTAR AND NEIGHBORHOOD.

REPORT BY CONSUL SPRAGUE.

Notwithstanding that the political situation of Europe seems to be
less threatening among its leading powers, still the uncertainty
prevalent among those who are generally considered the arbiters of
public affairs has had its influence in contracting the limits of
speculative adventure, thereby circumscribing the general course of
trade throughout the Mediterranean.

In renewing to the department my reports upon the navigation and
general commerce of Gibraltar, I beg to state that there has been a
tolerably fair current business prevailing in American produce during
the past quarter, consisting chiefly in flour, tobacco, and refined
petroleum in cases, imported direct from New York.

The steady demand for American petroleum confirms the fact that
R