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We then hailed him, and in reply he stated that he had surrendered, was on fire, and also that he was in a sinking condition. He then sent a boat on board, and surrendered the U.S. gunboat, Hatteras, nine guns, Lieutenant-Commander Blake, 140 men. Boats were immediately lowered and sent to his assistance, when an alarm was given that another steamer was bearing down for us.

It is proposed that of this number we shall the first year provide for the construction of two battleships, two battle cruisers, three scout cruisers, fifteen destroyers, five fleet submarines, twenty-five coast submarines, two gunboats, and one hospital ship; the second year, two battleships, one scout cruiser, ten destroyers, four fleet submarines, fifteen coast submarines, one gunboat, and one fuel oil ship; the third year, two battleships, one battle cruiser, two scout cruisers, five destroyers, two fleet sub marines, and fifteen coast submarines; the fourth year, two battleships, two battle cruisers, two scout cruisers, ten destroyers, two fleet submarines, fifteen coast submarines, one ammunition ship, and one fuel oil ship; and the fifth year, two battleships, one battle cruiser, two scout cruisers, ten destroyers, two fleet submarines, fifteen coast submarines, one gunboat, one ammunition ship, and one repair ship.

One evening calamity descended upon her from the island of Pygang-Watai, and she fled, while her crew jeered at a fat black-and-brown gunboat puffing far behind. They knew to the last revolution the capacity of every boat, on those seas, that they were anxious to avoid.

Her first volley knocked a gunboat to pieces; and in another minute she had crashed into the side of a Union ram, sending that unlucky craft ashore for repairs. But the storm of solid shot was too much for her; and she was forced to seek shelter under the bluffs, where the heavy guns of the Confederate shore-batteries compelled the Union ships to keep a respectful distance.

The lieutenant who succeeded to the command, seeing there was no prospect of help, and that resistance was hopeless, hauled down the flag. A gunboat was sent alongside, with orders that the crew should leave the Congress and come on board, as the ship was to be burned. But the troops and artillery lining the shore now opened fire on the little gunboat, which consequently hauled off.

"Be quiet, Tanner!" cried Smith; "he knows something. Now, then, Gnat: what does Ching say?" "That we shall never catch the pirates, because they won't come out when the gunboat is here." "Well, there's something in that. Tell Mr Reardon." "Is it worth while? He says we ought to arm a couple of junks, and wait for the pirates to come out and attack us."

At 6 o'clock P.M. of the 26th the leading gunboat and one transport came down. Our fire speedily crippled and silenced the gunboat, and a shot exploded the boiler of the transport. Under cover of escaping steam the gunboat drifted out of fire, but the loss of life on the transport was fearful.

Jeanne was lifted on to the cross beams, and was soon beside her sister, and Harry quickly clambered up. "They must not come on deck yet," the captain said, speaking down the hatchway. "We are too close to the gunboat, and from the forts with their glasses they can see what is passing on our deck.

The gunboat fleet pushed on down the Mississippi, but was brought up again all standing by the heavy batteries at Fort Pillow, about fifty miles above Memphis.

Pulling alongside, we announced ourselves, and were received with great warmth and enthusiasm on deck by half a dozen naval officers, among them Captain Williamson, United States Navy. She proved to be the Dandelion, a tender of the regular gunboat Flag, posted at the mouth of the Ogeechee.