I would like to repair rather than replace this garden faucet. It leaks ever so slightly: a drop or two every minute.  I don't know how this valve works.  I tried to open it. The picture shows how far I got.  I do not see a washer.  Is there a washer and, if so, how do I get to it?  If no washer, how do I fix the leak? <P>
Thank you.

[![Faucet with cap unscrewed][1]][1]


  [1]: https://i.sstatic.net/C1QqA.jpg