A dozen quarts of champagne in conjunction with an informal sitting of the president and his cabinet led to the establishment of the navy and the appointment of Felipe Carrera as its admiral.

Next to the champagne the credit of the appointment belongs to Don Sabas Placido, the newly confirmed Minister of War.

The president had requested a convention of his cabinet for the discussion of questions politic and for the transaction of certain routine matters of state. The session had been signally tedious; the business and the wine prodigiously dry. A sudden, prankish humor of Don Sabas, impelling him to the deed, spiced the grave affairs of state with a whiff of agreeable playfulness. In the dilatory order of business had come a bulletin from the coast department of Orilla del Mar reporting the seizure by the custom-house officers 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 whiskey. 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 the executive session.

In the consultation 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 humor 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 humor 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 Senor 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 humor 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 harbor. 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 bronze babe, guiltless of clothing, that rollicked upon the floor. In a grass hammock a thin woman, tinted a pale lemon, played a guitar and swung contentedly in the breeze. Thus surrounded by the routine of his high duties and the visible tokens of agreeable domesticity, the collector's heart was further made happy by the power placed in his hands to brighten the fortunes of the "innocent" Felipe.

Felipe came and stood before the collector. He was a lad of twenty, not ill-favored in looks, but with an expression of distant and pondering vacuity. He wore white cotton trousers, down the seams of which he had sewed red stripes with some vague aim at military decoration. A flimsy blue shirt fell open at his throat; his feet were bare; he held in his hand the cheapest of straw hats from the States.

"Senor Carrera," said the collector, gravely, producing the showy commission, "I have sent for you at the president's bidding. This document that I present to you confers upon you the title of Admiral of this great republic, and gives you absolute command of the naval forces and fleet of our country. You may think, friend Felipe, that we have no navy-but yes! The sloop the ~Estrella del Noche~, that my brave men captured from the coast smugglers, is to be placed under your command. The boat is to be devoted to the services of your country. You will be ready at all times to convey officials of the government to points along the coast where they may be obliged to visit. You will also act as a coast-guard to prevent, as far as you may be able, the crime of smuggling. You will uphold the honor and prestige of your country at sea, and endeavor to place Anchuria among the proudest naval powers of the world. These are your instructions as the Minister of War desires me to convey them to you. ~Por Dios!~ I do not know how all this is to be accomplished, for not one word did his letter contain in respect to a crew or to the expenses of this navy. Perhaps you are to provide a crew yourself, Senor Admiral-I do not know-but it is a very high honor that has descended upon you. I now hand you your commission. When you are ready for the boat I will give orders that she shall be made over into your charge. That is as far as my instructions go."