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Professor Bell proposed the “induction balance,” as a way of recognizing the approach of the enemy’s iron vessels. He went down the Bay with his instrument, and sent back some telegrams which were alarming, until it was discovered that the professor had made a slight error in the direction from which he asserted the ships were coming, it being manifestly impossible for them to sail overland from the Pacific, as his contrivance predicted.

The condition of affairs in the city reminded one of the early days of the Rebellion. Wall Street was panicky–chiefly because of the immense depreciation in railway securities. Government four-per-cent bonds, however, had gone up to ninety-eight. Provisions were high, and, through the stoppage of European commerce, the cost of imported articles, such as dress-goods, tea, etc., became excessive. Recruiting was going on everywhere; the regiments, as fast as organized, being dispatched to different points along the sea-board, or to swell the numbers of an army under command of General Sheridan, which was preparing to sail to Key West, to invade Cuba.

During the month of March New York remained in a state of suspense. Army contractors did a brisk business; but otherwise there was little doing. News was eagerly sought. It was known that Spain was mobilizing her army and fitting out transports; but beyond this, and the dispatching of the four ironclads, which had duly reached Havana, she had taken no steps pointing toward an invasion of the United States. All the European nations had issued proclamations of neutrality, except Russia and France. England had ordered the great Spanish ironclad, “El Cid,” in which Sir William Armstrong had just placed two 100-ton guns, out of her waters inside of twenty-four hours after Spain had declared war; and this, although the vessel was in many respects unfinished. The Queen’s proclamation was most stringent against the fitting out or coaling of the vessels of either belligerent, and a special Act of Parliament was passed, inflicting penalties of the greatest severity for any violation of it. John Bull evidently proposed to pay for no more “Alabamas.”

The first great news of the war came during the first week in June. The Spanish screw corvette “Tornado,” six guns, had sailed from Cartagena for Havana. Off Cape Trafalgar she encountered the “Lancaster,” flag-ship of the United States European squadron, bearing the flag of Rear-Admiral Nicholson. The “Lancaster” carried two-eleven-inch and twenty nine-inch old-fashioned smooth-bore Dahlgren guns. The action was short, sharp, and decisive.

It terminated in the surrender of the “Tornado,” after the loss of her captain, five officers, and forty of her crew. The “Lancaster” was badly cut up about the rigging, but otherwise uninjured. Her loss was but five men. The first tidings of this was the arrival of the “Tornado” in Hampton Roads, with a prize crew on board, and the royal ensign of Spain floating beneath the stars and stripes.

When the extras announcing the news were shouted in the streets, the enthusiasm of the people knew no bounds. From every building, from every window, the flag was displayed. Throngs of excited men marched through the avenues, cheering and shouting, and the recruiting was renewed so vigorously, that New York’s quota of the four hundred thousand men called for by the President was filled within the next twenty-four hours after the news came.

In the midst of this furore, the bulletins announced that the Spanish ironclads “Zaragoza” and “Numancia” had sailed from Havana, with no destination announced; that their consorts, the “Arapiles” and “Vittoria,” together with three transports, “San Quentin,” “Patino,” and “Ferrol,” the latter well laden with coal and provisions, were preparing to follow; also, that the huge “El Cid” had been fitted for sea, and was about to sail from Vigo, Spain.

Just before this intelligence arrived, the United States steam frigate “Franklin,” forty-three guns, carrying the flag of Vice-Admiral Stephen C. Rowan, left Hampton Roads on a cruise, northwardly.

Where were the Spanish ironclads going?