The next day after the retaking of Galveston, another sensation occurred, but of an entirely different character, showing other phases of human nature, and developing a different class of feelings. The circumstances were as follows: That day a fleet of transports hove in sight outside, just from New Orleans, bringing fifteen thousand troops, to reinforce the small garrison already there—one or two regiments. These troops belonged to General Banks' Department, and were sent to Galveston to commence operations on a larger scale than had ever been attempted before. It was an earnest purpose and part of a general plan for the subjugation of the "Lone Star" State. They were to make Galveston the Gulf base of operations, and penetrate inland to Houston, and thus up the Texas Central Railroad into the interior of the country, forming a junction with the expedition coming in from the Red River way, in accordance with plans traced on military maps. This would create a diversion, and compel the Texas forces to remain at home, and not be sent to fight Banks' main expedition. The scheme was doubtless a good one in its conception, and looked like the scheme of Grant and Sherman to break that portion of the Confederate backbone, lying west of the Mississippi. More than this, it was a part of the grand whole devised by them for crushing every part of the monster east and west of the Father of Waters.

The fleet knew nothing of the retaking of Galveston the day before. So they sent in a small craft with a few men, to herald their coming. The forerunner suspected nothing but what all was right till they reached the landing, where they were taken in charge by Confederate hands. The pilot proved to be a man who had volunteered in the Confederate army at the opening of the war, and was placed on sentinel duty at Bolivar Point, across the bay from Galveston, and one foggy night he stole a boat and deserted to the fleet outside, some months before. His name was Smith, but he bore the significant and historic name by which he was familiarly known on Galveston Island, of "Nicaragua" Smith. He had been with Walker in his filibustering expedition against Nicaragua. He was one of the worst desperadoes ever known in all that country, though so far he had managed to escape the hands of justice. But now, at last, he was caught as a deserter, and acting as pilot to the enemy, conducting him to the place and scenes he was so familiar with. The United States flag was still flying on the Custom House in plain view of the fleet. The deception at first was perfect, and the Confederate authorities hoped to play the game out, and capture the whole fleet, so they sent out true and trusty men in Federal uniform and equippage, to invite and conduct them in. But something raised suspicion—the want of proper salutes and signals, also credentials from the Commodore of the "Harriet Lane" fleet, now captured. The Commodore was blown up in an attempt to blow up one of the vessels after the surrender, and which was contrary to the usages of war.

On being questioned at the flag ship, suspicion was confirmed. The leader in charge was detained as an exchange host for Nicaragua Smith. The exchange never came. Smith was court-martialed, found guilty of inexcusable desertion, and sentenced to be shot to death the next day. When standing in front of the twelve messengers of death, the lieutenant having charge of the execution of the death sentence, advanced to him, and asked if he had any last word or message he desired to leave. He said "Yes," and gave it, but the character of it forbids its mention here. He died as he had lived, with unmentionable wickedness on his lips—a sad spectacle of depravity, unwept and unregretted by all!

The fleet steamed and sailed away, disappointed and defeated in the object of their coming. Banks was moving up the Red River Valley, with heavy land forces, supported by gun-boats, and Steele down through Arkansas, to a junction with him at Shreveport. But Texas, now relieved by the change of situation at Galveston, could spare their forces and send them to the front against Banks and Steele. They met them in detail, before the junction of the two lines, and both were defeated, and made disastrous retreats. Everything so far under Magruder seemed to favor the fortunes of Texas arms, and the prestige thereof by this time had become immense, particularly at home.