"Indeed!" exclaimed Arthur. "I am rejoiced to hear these tidings. And now, I presume, you are fully convinced that Miss Esther de Medina was entirely innocent of the theft so ridiculously imputed to her."

"On the contrary, my lord," answered the diamond-merchant: "I am more than ever certain that Miss de Medina was the person who took them."

"Mr. Gordon," exclaimed the Earl indignantly, "I should have thought that, after the investigation which took place at the office in Bow Street, you would not have clung to an opinion so dishonourable—so unjust towards an innocent young lady. Moreover, sir, I should have conceived that my testimony to that young lady's character would have dispelled any doubts which had still hung on your mind."

"That your lordship gave such testimony conscientiously, I cannot for an instant question," was the firm but respectful answer. "At the same time that your lordship was and is still deceived in that young lady, I am confident."

"Perhaps, sir," observed the Earl coldly, "you will have no objection to communicate the reasons which have thus induced you to change your opinion; for, if I remember rightly, you yourself declared, in the public office, that you were satisfied there was some grievous mistake, and that Miss de Medina was innocent of the deed imputed to her at first."

"I admit, my lord," replied the diamond-merchant, "that I was staggered by the singularity of the turn given to the proceedings when your lordship appeared to speak in Miss de Medina's defence. But listen, my lord, to the subsequent events which revived all my suspicions. Upon leaving the Police-Court I returned home, but was scarcely able to attend to my business, so bewildered was I by the occurrences of the morning, and so annoyed was I also at the loss which I had so mysteriously experienced. It was probably four o'clock in the afternoon, when a lady was announced; and the moment she raised her veil, I recognised Miss de Medina. You may conceive, my lord, how surprised I was by this visit: but much greater was my astonishment, when she said to me, without a single word of preface, 'Sir, what is the value of the diamonds which you have lost?'—'Six hundred pounds,' was my answer.—Miss de Medina immediately drew forth a small packet from her dress, and counted six Bank-notes, each of a hundred pounds, and which she placed before me on the table,—'Here is the amount, sir,' she said; and I offered her a receipt, which she however declined. For a few moments she lingered—as if anxious to say something more: then, suddenly turning away, she abruptly quitted the house."

"Extraordinary!" cried the Earl of Ellingham. "And yet——"

"One instant, my lord," interrupted Mr. Gordon: "the most mysterious part of the whole transaction is yet to be revealed to you. Not ten minutes had elapsed from the moment of Miss de Medina's departure, when a person, whom I remembered to have seen in the court, was announced. I do not know whether your lordship observed at the office a man of florid complexion—light curly hair—red whiskers—and dressed in a sporting suit——"

"I not only observed him," replied the Earl; "but from the description subsequently given by one of my servants, whom I questioned after my return home from the police-office, I have every reason to believe that the individual whom you describe was the bearer of a letter which had induced me to hasten to Bow Street to give my testimony in proof of Miss de Medina's innocence."