"Williams, you have conquered! I see too late the greatness and elevation of your mind. I confess that it is to my fault and not yours that I owe my ruin … I am the most execrable of all villains… As reputation was the blood that warmed my heart, so I feel that death and infamy must seize me together."

Three days later Falkland dies, but instead of experiencing relief at the death of his persecutor, Williams becomes the victim of remorse, regarding himself as the murderer of a noble spirit, who had been inevitably ruined by the corruption of human society:

"Thou imbibedst the poison of chivalry with thy earliest youth, and the base and low-minded envy that met thee on thy return to thy native seats, operated with this poison to hurry thee into madness."

At the conclusion of the story, Godwin has not succeeded in making his moral very clear. The "wicked aristocrat" who figures in the preface as "carrying into private life the execrable principles of kings and ministers" emerges at last almost as a saintly figure, who through a false notion of honour has unfortunately become the victim of a brutal squire. But, if the story does not "rouse men to a sense of the evils of slavery," or "constitute an epoch in the mind of every reader," it has compensating merits and may be read with unfailing interest either as a study of morbid psychology or as a spirited detective story. Godwin's originality in his dissection of human motive has hardly yet been sufficiently emphasised, perhaps because he is so scrupulous in acknowledging literary debts.[78] From Mrs. Radcliffe, whose Romance of the Forest was published the year before Caleb Williams, he borrowed the mysterious chest, the nature of whose contents is hinted at but never actually disclosed; but Godwin was no wizard, and had neither the gift nor the inclination to conjure with Gothic properties. In leaving imperfectly explained the incident of the discovery of the heart in The Monastery, Scott shielded himself behind Godwin's Iron Chest, which gave its name to Colman's drama.[79] Godwin's peculiar interest was in criminal psychology, and he concentrates on the dramatic conflict between the murderer and the detective. An unusual turn is given to the story by the fact that the criminal is the pursuer instead of the pursued. Godwin intended later in life to write a romance based on the story of Eugene Aram, the philosophical murderer; and his careful notes on the scheme are said to have been utilised by his friend, Bulwer Lytton, in his novel of that name.[80] Caleb Williams helped to popularise the criminal in fiction, and Paul Clifford, the story of the chivalrous highwayman, is one of its literary descendants.

Godwin was a pioneer breaking new ground in fiction; and, as he was a man of talent rather than of genius, it is idle to expect perfection of workmanship. The story is full of improbabilities, but they are described in so matter-of-fact a style that we "soberly acquiesce." After an hour of Godwin's grave society an effervescent sense of humour subsides. A mind open to suggestion is soon infected by his imperturbable seriousness, which effectually stills "obstinate questionings." Even the brigands who live with their philanthropic leader are accepted without demur. After all, Raymond is only Robin Hood turned political philosopher. The ingenious resources of Caleb Williams when he strives to elude his pursuer are part of the legitimate stock-in-trade of the hero of a novel of adventure. He is not as other men are, and comes through perilous escapades with miraculous success. It is at first difficult to see why Falkland does not realise that his plan of ceaselessly harassing his victim is likely to force Williams to accuse him publicly, but gradually we begin to regard his mental obliquity as one of the decrees of fate. Falkland's obtuseness is of the same nature as that of the sleeper who undertakes a voyage to Australia to deliver a letter which anywhere but in a dream would have been dropped in the nearest pillar-box. The obvious solution that would occur to a waking mind is persistently evasive. The plot of Caleb Williams hinges on an improbability, but so does that of King Lear; and if it had not been for Falkland's stupidity, the story would have ended with the first volume. Godwin excels in the analysis of mental conditions, but fails when he attempts to transmute passionate feeling into words. We are conscious that he is a cold-blooded spectator ab extra striving to describe what he has never felt for himself. It is not even "emotion recollected in tranquillity." Men of this world, who are carried away by scorn and anger, utter their feelings simply and directly. Godwin's characters pause to cull their words from dictionaries. Forester's invective, when he believes that Williams has basely robbed his master is astonishingly elegant: "Vile calumniator! You are the abhorrence of nature, the opprobrium of the human species and the earth can only be freed from an insupportable burthen by your being exterminated."[81] The diction is so elaborately dignified that the contempt which was meant almost to annihilate Caleb Williams, lies effectually concealed behind a blinding veil of rhetoric. When he has leisure to adorn, he translates the simplest, most obvious reflections into the "jargon" of political philosophy, but, driven impetuously forward by the excitement of his theme, he throws off jerky, spasmodic sentences containing but a single clause. His style is a curious mixture of these two manners.

The aim of St. Leon: A Tale of the Sixteenth Century, is to show that "boundless wealth, freedom from disease, weakness and death are as nothing in the scale against domestic affection and the charities of private life."[82] For four years Godwin had desired to modify what he had said on the subject of private affections in Political Justice, while he asserted his conviction of the general truth of his system. Godwin had argued that private affections resulted in partiality, and therefore injustice.[83] If a house were on fire, reason would urge a man to save Fénelon in preference to his valet; but if the rescuer chanced to be the brother or father of the valet, private feeling would intervene, unreasonably urging him to save his relative and abandon Fénelon. Lest he should be regarded as a wrecker of homes, Godwin wished to show that domestic happiness should not be despised by the man of reason. Instead of expressing his views on this subject in a succinct pamphlet, Godwin, elated by the success of Caleb Williams, decided to embody them in the form of a novel. He at first despaired of finding a theme so rich in interest as that of his first novel, but ultimately decided that "by mixing human feelings and passions with incredible situations he might conciliate the patience even of the severest judges."[84] The phrase, "mixing human feelings," betrays in a flash Godwin's mechanical method of constructing a story. He makes no pretence that St. Leon grew naturally as a work of art. He imposed upon himself an unsuitable task, and, though he doggedly accomplished it, the result is dull and laboured.

The plot of St. Leon was suggested by Dr. John Campbell's Hermippus Redivivus,[85] and centres round the theories of the Rosicrucians. The first volume describes the early life of the knight St. Leon, his soldiering, his dissipations, and his happy marriage to Marguerite, whose character is said to have been modelled on that of Mary Wollstonecraft. In Paris he is tempted into extravagance and into playing for high stakes, with the result that he retires to Switzerland the "prey of poverty and remorse." Misfortunes pursue him for some time, but he at last enjoys six peaceful years, at the end of which he is visited by a mysterious old man, whom he conceals in a summer-house, and whom he refuses to betray to the Inquisitors in search of him. In return the old man reveals to him the secret of the elixir vitæ, and of the philosopher's stone. Marguerite becomes suspicious of the source of her husband's wealth: "For a soldier you present me with a projector and a chemist, a cold-blooded mortal raking in the ashes of a crucible for a selfish and solitary advantage." His son, Charles, unable to endure the aspersions cast upon his father's honour during their travels together in Germany, deserts him. St. Leon is imprisoned because he cannot account for the death of the stranger and for his own sudden acquisition of wealth, but contrives his escape by bribing the jailor. He travels to Italy, but is unable to escape from misfortune. Suspected of black magic, he becomes an object of hatred to the inhabitants of the town where he lives. His house is burnt down, his servant and his favourite dog are killed, and he soon hears of the death of his unhappy wife. He is imprisoned in the dungeons of the Inquisition, but escapes, and takes refuge with a Jew, whom he compels to shelter him, until another dose of the elixir restores his youthful appearance, and he sets forth again, this time disguised as a wealthy Spanish cavalier. He visits his own daughters, representing himself as the executor under their father's will. He decides to devote himself to the service of others, and is revered as the saviour of Hungary, until disaffection, caused by a shortage of food, renders him unpopular. He makes a friend of Bethlem Gabor, whose wife and children have been savagely murdered by a band of marauders. St. Leon, we are told, "found an inexhaustible and indescribable pleasure in examining the sublime desolation of a mighty soul." But Gabor soon conceives a bitter hatred against him, and entraps him in a subterranean vault, where he languishes for many months, refusing to yield up his secret. At length the castle is besieged, and Gabor before his death gives St. Leon his liberty. The leader of the expedition proves to be St. Leon's long-lost son, Charles, who has assumed the name of De Damville. St. Leon, without at first revealing his identity, cultivates the friendship of his son, but Charles, on learning of his dealings with the supernatural, repudiates his father. Finally the marriage of his son to Pandora proves to St. Leon that despite his misfortunes "there is something in this world worth living for."

The Inquisition scenes of St. Leon were undoubtedly coloured faintly by those of Lewis's Monk (1794) and Mrs. Radcliffe's Italian (1798); but it is characteristic of Godwin that instead of trying to portray the terror of the shadowy hall, he chooses rather to present the argumentative speeches of St. Leon and the Inquisitor. The aged stranger, who bestows on St. Leon the philosopher's stone and the elixir of life, has the piercing eye so familiar to readers of the novel of terror: "You wished to escape from its penetrating power, but you had not the strength to move. I began to feel as if it were some mysterious and superior being in human form;"[86] but apart from this trait he is not an impressive figure. The only character who would have felt perfectly at home in the realm of Mrs. Radcliffe and "Monk" Lewis is Bethlem Gabor, who appears for the first time in the fourth volume of St. Leon. He is akin to Schedoni and his compeers in his love of solitude, his independence of companionship, and his superhuman aspect, but he is a figure who inspires awe and pity as well as terror. Beside this personage the other characters pale into insignificance:

"He was more than six feet in stature … and he was built as if it had been a colossus, destined to sustain the weight of the starry heavens. His voice was like thunder … his head and chin were clothed with a thick and shaggy hair, in colour a dead-black. He had suffered considerable mutilation in the services through which he had passed … Bethlem Gabor, though universally respected for the honour and magnanimity of a soldier, was not less remarkable for habits of reserve and taciturnity… Seldom did he allow himself to open his thoughts but when he did, Great God! what supernatural eloquence seemed to inspire and enshroud him… Bethlem Gabor's was a soul that soared to a sightless distance above the sphere of pity."[87]

The superstitions of bygone ages, which had fired the imagination of so many writers of romance, left Godwin cold. He was mildly interested in the supernatural as affording insight into the "credulity of the human mind," and even compiled a treatise on The Lives of the Necromancers (1834).[88] But the hints and suggestions, the gloom, the weird lights and shades which help to create that romantic atmosphere amid which the alchemist's dream seems possible of realisation are entirely lacking in Godwin's story. He displays everything in a high light. The transference of the gifts takes place not in the darkness of a subterranean vault, but in the calm light of a summer evening. No unearthly groans, no phosphorescent lights enhance the horror and mystery of the scene. Godwin is coolly indifferent to historical accuracy, and fails to transport us back far beyond the end of the eighteenth century. Rousseau's theories were apparently disseminated widely in 1525. St. Leon is remembered now rather for its position in the history of the novel than for any intrinsic charm. Godwin was the first to embody in a romance the ideas of the Rosicrucians which inspired Bulwer Lytton's Zicci, Zanoni and A Strange Story.