I had always thought that the phrase was a simple response to the queens question because the #2 boat was so far behind it was out of sight when the yacht America crossed the finish line and couldn't even be considered as coming in second, therefore when the queed asked the question there wasn't any second place. In reading about the present account it appears that the answer "Ah, Your Majesty, there is no second." is because in race for the '100 Guinea Cup' really didn't have a second place. They only considered first place in the race.

Anyone know which is correct?