cause of Balmaceda. But amongst these were two new and fast torpedo gunboats, Almirante Condell and Almirante Lynch, and in European dockyards (incomplete) lay the most powerful vessel of the navy, the battleship Capitán Prat, and two fast cruisers. If these were secured by the Balmacedists the naval supremacy of the congress would be seriously challenged. The resources of Balmaceda were running short on account of the heavy military expenses, and he determined to dispose of the reserve of silver bullion accumulated in the vaults of the Casa de Moneda in accordance with the terms of the law for the conversion of the note issue. The silver was conveyed abroad in a British man-of-war, and disposed of partly for the purchase of a fast steamer to be fitted as an auxiliary cruiser and partly in payment for other kinds of war material. Itata incident The organization of the revolutionary forces went on slowly. They were experiencing difficulty in obtaining the necessary arms and ammunition. A supply of rifles was bought in the United States, and embarked on board the Itata, a Chilean vessel in the service of the rebels. The United States authorities refused to allow this steamer to leave San Diego, and a guard was stationed on the ship. The Itata, however, slipped away and made for the Chilean coast, carrying with her the representatives of the United States. A fast cruiser was immediately sent in pursuit, but only succeeded in overhauling the rebel ship after she was at her destination. The Itata was then forced to return to San Diego without landing her cargo for the insurgents. Hostilities The first shot was fired, on 16 January, by the Blanco at the Valparaiso batteries, and landing parties from the warships engaged small parties of government troops at various places during January and February. Balmaceda's principal forces were stationed in and about Iquique, Coquimbo, Valparaíso, Santiago and Concepción. The troops at Iquique and Coquimbo were necessarily isolated from the rest and from each other, and military operations began, as in the campaign of 1879 in this quarter, with a naval descent upon Pisagua followed by an advance inland to Dolores. The Congressional forces failed at first to make good their footing (16–23 January), but, though defeated in two or three actions, they brought off many recruits and a quantity of munitions of war. On the 26th they retook Pisagua, and