When the vessel is sighted, a crewman calls out, " Schooner dead ahead". As the vessel is square rigged, it cannot be a schooner which is fore and aft rigged. No Grand Banks fisherman would ever have made this error because schooners made up a large part of that fishing fleet.
A crewman states that the mystery vessel must be Danish because the only remaining square riggers are Danish. In fact, Germany also had square rigged ships during this period. One became the American Coast Guard "Eagle" and one the Russian "Tovarisch" as war prizes taken following World War II.