Seeing in this foolish roysterer an easy and profitable victim, Devilshoof accosted him at once, calling his companions about him at the same time; and in a few minutes they had stripped him of every valuable he had carried, for Florestein, being a coward as well as a fop, was too terrified even to cry out.

Having possessed himself of a rich jewelled medallion and chain, Devilshoof made his escape, leaving his companions to finish what he had begun; but whilst the exulting gipsies were eagerly dividing their spoils, another cloaked figure suddenly appeared in their midst. Full of surprise and dismay, they started back, for the cloaked figure was that of their own gipsy queen, and they could read anger in her mien.

With a haughty gesture she bade them instantly restore all they had stolen from their victim, and not daring to disobey her command, the gipsies sullenly handed back the rings, chains, and other jewels they had been so eager to secure.

"Is that all?" demanded the queen, and Florestein, in a voice trembling with fright, replied that he yet lacked a handsome gold medallion, set with diamonds, worth all the rest. The gipsies explained that Devilshoof had gone off with this jewel as his prize; and then the queen led Florestein away, saying she would protect him, to a place of safety, and beckoning to the gipsies to follow her.

When the street was quiet once more, Arline, who had been awakened by the noise, arose and came forth from the tent into the moonlight, followed by Thaddeus. These two had grown to be lovers during the years that had passed, and they only awaited the gipsy queen's pleasure to join their hands in marriage.

Arline had no knowledge of her noble birth, though she had always felt herself to be different from the careless gipsies with whom she lived, and to-night, as she stood in the moonlight, she told Thaddeus of a dream she had just awakened from, which seemed to bear a message for her. She had dreamt that she dwelt in marble halls, amidst great riches and splendour, bearing a high ancestral name; that countless suitors sought her hand; and yet, which charmed her most of all, that Thaddeus still loved her just the same.

When her story came to an end she begged her lover to tell her the secret of her birth, for she felt that he knew it, since he had already told her that a certain scar upon her arm had been caused by the charge of a wild stag, from which danger he had saved her years ago; but for answer Thaddeus only showered kisses upon her, for he knew full well that if he disclosed her true birth they must be parted.

Whilst they were thus folded in each other's arms, the gipsy queen—who also loved Thaddeus—suddenly returned, and, advancing towards Arline, angrily demanded how she thus dared to aspire to the love of one who was the chosen lover of her queen. But Arline was not afraid of her rival's anger; and standing aside, she said that Thaddeus should choose between them. Instantly Thaddeus folded her in his arms again, and then Arline, with a triumphant smile, turned towards the other gipsies who had now gathered round, and declared that it was their desire to be wed. Then Devilshoof, whose delight it was to make mischief and stir up jealousy, reminded the queen that it was her duty and right as a ruler of the tribe to join the hands of those of her subjects who desired to be united; and the queen, afraid of losing her authority should she refuse, came slowly forward, and haughtily placed the hand of Arline in that of Thaddeus, according to the gipsy custom of betrothal.

But she was full of inward disappointment and rage, and when Arline and Thaddeus presently wandered off in the moonlight, she turned upon Devilshoof, and passionately accused him of having brought this evil hour upon her, declaring she would only pardon him on condition that he yielded up to her the jewelled medallion he had stolen that night.

Devilshoof, though he feared naught else, dared not disobey the queen of his tribe, so he delivered up the medallion, but muttered vengeance as he strode away. The gipsy queen also thought of revenge; and as she hid the jewel in her dress, she laid a cunning plan for bringing trouble upon her rival by means of it.