at the town of Coralio of the sloop Estrella del Noche and her cargo of drygoods, patent medicines, granulated sugar and three-star brandy. Also six Martini rifles and a barrel of American whisky. Caught in the act of smuggling, the sloop with its cargo was now, according to law, the property of the republic.

The Collector of Customs, in making his report, departed from the conventional forms so far as to suggest that the confiscated vessel be converted to the use of the government. The prize was the first capture to the credit of the department in ten years. The collector took opportunity to pat his department on the back.

It often happened that government officers required transportation from point to point along the coast, and means were usually lacking. Furthermore, the sloop could be manned by a loyal crew and employed as a coast guard to discourage the pernicious art of smuggling. The collector also ventured to nominate one to whom the charge of the boat could be safely intrusted - a young man of Coralio, Felipe Carrera - not, be it understood, one

of extreme wisdom, but loyal and the best sailor along the coast.

It was upon this hint that the Minister of War acted, executing a rare piece of drollery that so enlivened the tedium of executive session.

In the constitution of this small, maritime banana republic was a forgotten section that provided for the maintenance of a navy. This provision — with many other wiser ones had lain inert since the establishment of the republic.

Anchuria had no

navy and had no use for one. It was characteristic of Don Sabas a man at once merry, learned, whimsical and audacious that he should have disturbed the dust of this musty and sleeping statute to increase the humour of the world by so much as a smile from his indulgent colleagues.

With delightful mock seriousness the Minister of War proposed the creation of a navy. He argued its need and the glories it might achieve with such gay and witty zeal that the travesty overcame with its humour even the swart dignity of President Losada himself.

The champagne was bubbling trickily in the veins

of the mercurial statesmen. It was not the custom of the grave governors of Anchuria to enliven their sessions with a beverage so apt to cast a veil of disparagement over sober affairs. The wine had been a thoughtful compliment tendered by the agent of the Vesuvius Fruit Company as a token of amicable relations and certain consummated deals-between that company and the republic of Anchuria.

The jest was carried to its end. A formidable, official document was prepared, encrusted with chromatic seals and jaunty with fluttering ribbons, bearing the florid signatures of state. This commission conferred upon el Señor Don Felipe Carrera the title of Flag Admiral of the Republic of Anchuria. Thus within the space of a few minutes and the dominion of a dozen "extra dry," the country took its place among the naval powers of the world, and Felipe Carrera became entitled to a salute of nineteen guns whenever he might enter port.

The southern races are lacking in that particular kind of humour that finds entertainment in the defects and misfortunes bestowed by Nature. Owing to this defect in their constitution they are not

moved to laughter (as are their northern brothers) by the spectacle of the deformed, the feeble-minded or the insane.

Felipe Carrera was sent upon earth with but half his wits. Therefore, the people of Coralio called him "El pobrecito loco" "the poor little crazed one"saying that God had sent but half of him to earth, retaining the other half.

A sombre youth, glowering, and speaking only at the rarest times, Felipe was but negatively "loco." On shore he generally refused all conversation. He seemed to know that he was badly handicapped on land, where so many kinds of understanding are needed; but on the water his one talent set him equal with most men. Few sailors whom God had carefully and completely made could handle a sailboat as well. Five points nearer the wind than the best of them he could sail his sloop. When the elements raged and set other men to cowering, the deficiencies of Felipe seemed of little importance. He was a perfect sailor, if an imperfect man. He owned no boat, but worked among the crews of the schooners and sloops that skimmed the coast, trading and

freighting fruit out to the steamers where there was no harbour. It was through his famous skill and boldness on the sea, as well as for the pity felt for his mental imperfections, that he was recommended by the collector as a suitable custodian of the captured sloop.

When the outcome of Don Sabas' little pleasantry arrived in the form of the imposing and preposterous commission, the collector smiled. He had not expected such prompt and overwhelming response to his recommendation. He despatched a muchacho at once to fetch the future admiral.

The collector waited in his official quarters. His office was in the Calle Grande, and the sea breezes hummed through its windows all day. The collector, in white linen and canvas shoes, philandered with papers on an antique desk. A parrot, perched on a pen rack, seasoned the official tedium with a fire of choice Castilian imprecations. Two rooms opened into the collector's. In one the clerical force of young men of variegated complexions transacted with glitter and parade their several duties. Through the open door of the other room could be seen a