victory. Balmaceda's army had marched into battle 14,000 strong, and had been obliged to beat a retreat, having lost, besides 1000 men killed and many more than that number wounded, 18 field-guns, and 170 mules laden with stores and ammunition. So signal was the disaster that, on realizing it, no less than 1500 men of the Government forces threw down their arms and fled into the mountains, while twice that number changed their uniforms and went over holus bolus to the enemy.

Immediately this crushing news became known to him, Balmaceda reinforced the garrison of Valparaiso with troops from the south, and then, with an army of 8000 men, perched himself on the heights above the city, and prepared to fight the last and decisive battle of the campaign.

In Valparaiso the result of the impending engagement was, as may be imagined, anxiously awaited by every one, Gobiernistas and Oppositores alike. The former made no secret of their intention, in the event of victory crowning their arms, to wreak vengeance upon their enemies. But the Oppositores, on the other hand, though equally sanguine of success, wisely refrained from giving vent to their feelings, for not only were they located in the enemy's camp, so to speak, but they could not help foreseeing that even a victory for their cause would involve them in great risk, inasmuch as the Government troops would undoubtedly fall back upon the town, when they would in all probability commence to sack and burn Opposition property.

Such was the position of affairs on the evening described at the commencement of the chapter.

As I have said, Marcos Veneda appeared to have made up his mind. This might have been gathered from the set of his shoulders and his carriage of his body when he resumed his walk. There was also a new and singularly defiant look in his face as he passed into the Calle de Victoria which had not been there five minutes before.

Half-way down the street he paused to try and decipher a notice newly pasted on a wall. As he read, he became conscious that he was being watched. Looking up, he found himself confronted by one of the most respected English residents then remaining in the town. This gentleman, whose personal appearance would not have been out of place in a London board-room, had always shown himself one of Veneda's most inveterate foes, and for this reason the latter was inclined to cross over the road without a second glance at him. That, however, the elder man would not permit; he advanced and button-holed his victim before he had time to leave the pavement.

"I think you are going in my direction," he began, in order to give Veneda time to recover from his astonishment. "In that case I shall not be trespassing upon your time if I ask you to allow me to walk a little way with you. I have something I want to say to you."

"I object to being button-holed in this fashion," the other replied, an angry flush mantling his face.

"Not when it is to enable you to learn something to your advantage, I think," his companion said quietly. "However, don't let us quarrel, I simply stopped you because I want to do you a good turn. I know very well you dislike me."

"It may be bad policy to say so," Veneda sneered, "but I must own I do not exactly love you; you see, you have never given me an opportunity."

"Well, we won't discuss that now. What I want to say is, that I think in times like these we Englishmen ought to hang a bit closer together, don't you know; to try and help each other in any way we can."

The old gentleman, whose intentions were really most benevolent, gazed anxiously at his companion, to see how his speech would be taken. But Veneda's only answer was to laugh in a peculiarly grating fashion. It was an unpleasant performance, born of the remembrance of snubs and bitter discouragements received at the other's hands in by-gone days. For the space of thirty seconds neither spoke, and then it was the younger man, who said abruptly—

"Well?"

"You don't mind my going on?"

"I certainly should if I could prevent it," replied Veneda; "but you've got me at a disadvantage, you see. I must listen to you."

"Well, the long and the short of it is, I want to warn you."

"That's exceedingly good of you; and pray what of?"

"Of yourself. It is—forgive my saying so—an openly discussed subject in the town that you are playing a double game."

Veneda stopped suddenly, and leaning his back against a wall, faced his companion.

"A double game," he said slowly, as if weighing every word before he allowed himself to utter it; "and in what way is it supposed that I am playing a double game? Think carefully before you speak, for I may be compelled to hold you responsible."

The worthy merchant experienced a sensation of nervousness. His memory recalled several little episodes in Veneda's past, the remembrance of which, under the present circumstances, was not likely to contribute to his peace of mind.

"Now don't get angry, my dear fellow," he hastened to say, "I'm only telling you this for your own good. I mean that it is said you are endeavouring to stand with a leg in either camp; that while you pose among us as an active Oppositionist, you are in reality in communication with Balmaceda's leaders. In other words, that, while we have been trusting you, you have been selling our secrets to our foes."

"Well?"

Now it was a remarkable fact, that while the old gentleman expected and even dreaded an exhibition of wrath from his companion, he was in reality a good deal more frightened by this simple question than he would have been by the most violent outburst. And yet there was nothing startling in the word itself, nor in the manner in which it was uttered. Veneda still lounged in the same careless attitude against the wall, looking his companion up and down out of his half-closed eyes, as if to cause him any uneasiness would be the one thing furthest from his mind; but it was noticeable that his right hand had stopped fingering the trinkets on his watch-chain, and had passed into his coat-pocket, where a certain bulginess proclaimed the existence of a heavy object.

"Go on," he continued slowly, "since you seem to be so well informed; what else do my kind friends say?"

"Well, if you want it bluntly, Veneda, they say that if our side wins to-morrow, of which there seems to be little or no doubt, and you remain in the city, your life won't be worth five minutes' purchase."

"And—and your reason for telling me all this?"

"Simply because I want to warn you. And because, in spite of your Spanish name, which every one knows is assumed, you are an Englishman; and, as I said before, Englishmen ought to do what they can to help each other at such times as these. You don't think I've said too much?"

"By no means. I hope you'll understand how grateful I am to you for your trouble."

"No trouble; I only wish the warning may prove of some use to you. Look here, we haven't been very good friends in the past, but I do hope——"

"That in the future we may be David and Jonathan on a substantial New Jerusalem basis, I suppose. Do you hear those guns?"

The noise of cannonading came down the breeze. And as he heard it the merchant shuffled uneasily.

"What does it mean?"

"Well, I think it means that to-morrow will decide things more important than our friendship. That's all. You're not coming any farther my way? Then good-night!"

With a muttered apology for having so long detained him, the old gentleman continued his walk to the left hand. When he had quite disappeared, Veneda resumed his walk, saying softly to himself, "This is what comes of listening to the voice of woman. I was