Next day a great fair was held in Presburg, and all the gipsy tribe went to join in the revels. Arline and the other Bohemian maids took their tambourines, and sang and danced for the amusement of the holiday-makers; and many of the gay youths of the town sought to obtain favours from the pretty strangers.

Amongst these revellers was the fop, Florestein, decked in all his bravest attire, who was greatly struck with the beauty and grace of Arline; and seeing her standing alone one time, he swaggered up and made flattering remarks to her. Finding that his foolish speeches were not listened to, he next tried to snatch a kiss, but to his surprise and dismay, Arline turned sharply round upon him and boxed his ears!

As he turned away, angry and discomfited, the gipsy queen, who had been watching the scene, recognised him as the roysterer whom she had protected the night before, and running after Arline, she fastened the jewelled medallion round her neck, saying that it was a reward for her pretty conduct, but knowing full well that Florestein would soon see it, and accuse the girl of theft.

Having thus carried out the evil plan she had laid, the queen left the fair ground, and soon afterwards the rest of the tribe departed also. But just as Thaddeus and Arline were moving away, Florestein caught sight of his medallion hanging round the maiden's neck; and hurrying forward, he loudly accused her of having stolen it from him, rejoicing to thus bring trouble upon one who had repulsed his advances. Arline indignantly defended herself, but at the command of Florestein, she was quickly surrounded by the city guards, who seized and bore her off in triumph to the Hall of Justice.

Here Count Arnheim sat, waiting to do justice on those offenders who should be brought before him that day; for his high position had made him the Chief Judge of the district. The twelve years that had gone by had aged him very much, for all his efforts to trace his stolen daughter had been in vain; but never for a moment had he altogether given up hope, and never did he cease to think of the sweet little maid who had been the only comfort of his lonely heart.

He was thinking of her now as he sat in the Hall of Justice on the day of the fair; but presently his sad thoughts were rudely interrupted by the entrance of the city guards, with Arline in their midst, and Florestein bringing up the rear.

With swaggering, self-satisfied demeanour, Florestein approached his uncle, and in angry, excited tones, accused Arline of having stolen his diamond medallion; but Count Arnheim, greatly struck with the beauty and innocent looks of the young girl, who reminded him strangely of his own lost child, begged her to defend herself.

Then Arline explained in clear, sweet tones that the jewel had been but a short time ago bestowed upon her by the gipsy queen, who, she now saw, had intended to bring trouble upon her by this very gift; and she proudly declared that, rather than be accused of such baseness as common theft, she would take her own life. She drew a dagger as she spoke, but ere she had raised her arm, Count Arnheim, whose chords of memory had again been touched by the maiden's sweet voice, sprang forward and snatched the weapon from her hand.

His action was so sudden that Arline's loose sleeve slipped back from her elbow, disclosing the rough scar upon her white arm, and as the Count's gaze fell upon this wound mark, he turned suddenly pale, and in trembling accents demanded eagerly how she came by it. Full of surprise at his tone, Arline repeated the story of the maddened stag that Thaddeus had told to her, and Count Arnheim, knowing now beyond a doubt that this beautiful Bohemian maiden was indeed his long-lost child, clasped her in his arms with frantic joy, declaring to all that she was his beloved daughter.