A fresh impetus had been given to the panic by the report brought in to-day by Jim Struggles. Jim was of an ambitious and aspiring turn of mind, and after gazing in silent disgust at his last week’s clean up, he had metaphorically shaken the clay of Harvey’s Sluice from his feet, and had started off into the woods with the intention of prospecting round until he could hit upon some likely piece of ground for himself. Jim’s story was that he was sitting upon a fallen trunk eating his mid-day damper and rusty bacon, when his trained ear had caught the clink of horses’ hoofs. He had hardly time to take the precaution of rolling off the tree and crouching down behind it, before a troop of men came riding down through the bush, and passed within a stone-throw of him.

“There was Bill Smeaton and Murphy Duff,” said Struggles, naming two notorious ruffians; “and there was three more that I couldn’t rightly see. And they took the trail to the right, and looked like business all over, with their guns in their hands.”

Jim was submitted to a searching cross-examination that evening; but nothing could shake his testimony or throw a further light upon what he had seen. He told the story several times and at long intervals; and though there might be a pleasing variety in the minor incidents, the main facts were always identically the same. The matter began to look serious.

There were a few, however, who were loudly sceptical as to the existence of the rangers, and the most prominent of these was a young man who was perched on a barrel in the centre of the room, and was evidently one of the leading spirits in the community. We have already seen that dark curling hair, lack-lustre eye, and thin cruel lip in the person of Black Tom Ferguson, the rejected suitor of Miss Sinclair. He was easily distinguishable from the rest of the party by a tweed coat, and other symptoms of effeminacy in his dress, which might have brought him into disrepute had he not, like Abe Durton’s partner, early established the reputation of being a quietly desperate man. On the present occasion he seemed somewhat under the influence of liquor, a rare occurrence with him, and probably to be ascribed to his recent disappointment. He was almost fierce in his denunciation of Jim Struggles and his story.

“It’s always the same,” he said; “if a man meets a few travellers in the bush, he’s bound to come back raving about rangers. If they’d seen Struggles there, they would have gone off with a long yarn about a ranger crouching behind a tree. As to recognizing people riding fast among tree-trunks—it is an impossibility.”

Struggles, however, stoutly maintained his original assertion, and all the sarcasms and arguments of his opponent were thrown away upon his stolid complacency. It was noticed that Ferguson seemed unaccountably put out about the whole matter. Something seemed to be on his mind, too; for occasionally he would spring off his perch and pace up and down the room with an abstracted and very forbidding look upon his swarthy face. It was a relief to everyone when suddenly catching up his hat, and wishing the company a curt “Good-night,” he walked off through the bar, and into the street beyond.

“Seems kinder put out,” remarked Long McCoy.

“He can’t be afeard of the rangers, surely,” said Joe Shamus, another man of consequence, and principal shareholder of the El Dorado.

“No, he’s not the man to be afraid,” answered another. “There’s something queer about him the last day or two. He’s been long trips in the woods without any tools. They do say that the assayer’s daughter has chucked him over.”

“Quite right too. A darned sight too good for him,” remarked several voices.