minute she was fast aground on a bank of the narrow channel. Every eye in Key West harbour was fixed upon her, and before any one again thought of the departing tow, it had gained the high seas, and was beyond the jurisdiction of either Spain or "Uncle Sam." A little later, with the saucy Mermaid safely hidden in the ample receptacle of the great dumping scow, the tow had vanished in the direction of Havana. That night the spy boarded a swift passenger steamer bound for the same port, which at sunrise of the following morning passed beneath the frowning walls of Moro Castle in company with the tow he had come to watch. The Mermaid retained her berth even after a pilot had boarded the tug, and her crew looked eagerly upon the wonderfully beautiful scene unfolding before them as they passed through a narrow entrance into the broad, landlocked harbour of Havana. Carl Baldwin, to whom everything was excitingly novel, viewed with delight the grim Moro with its tall lighthouse tower, the white Cabanas fortress, the tinted, flat-roofed buildings of the city across the placid basin, the quaint cathedral spires, and the thousand other curious features of Spain's chief stronghold in the New World. Carlos Moranza, filled with conflicting emotions at again approaching his native land under such strange conditions, gazed in silence, but as though hoping with the very intensity of his vision to pierce the crowding walls and discover the prison of his beloved sister. Professor Rivers had eyes only for the warships, of which the harbour held half-a-dozen, as he speculated upon the ease with which his little Mermaid could humble their pride and render them powerless. At this very moment the Spanish spy was regarding, and triumphantly recognising, all three of the Americans through a glass levelled at them from the deck of the steamer on which he was a passenger. Thus it happened that, as the captain of the tug was preparing to go ashore and make formal entry at the custom-house, after having successfully passed examination by both health officers and port authorities, two barges filled with soldiers dashed out from the mole and headed directly towards the new arrivals. One of these took possession of the tug, while the other, in which sat the exulting spy, ranged alongside the dumping scow. For nearly an hour the soldiers searched every compartment and corner of the two vessels, even overhauling the coal in the tug's bunkers. When there was no longer an