The Caliph was not ill-pleased to have discovered the nefarious trade which was being here carried on, and determined to have the house closely watched in future, in the hope of thus noting and securing a great number of the most expert and artful thieves in Bagdad.

As he moved out of the obscurity of the doorway revolving these things in his mind, a ragged and decrepit beggar, who had just dragged himself with slow and weary steps to this spot, begged an alms in the professional whine common to his class. The Caliph gave him a small piece of silver, and then watched him as he crossed the road and entered a dilapidated and wretched hovel, which stood close by the outer wall of the house of the dealer in stolen goods.

The inside of the hovel consisted of one small room, containing no furniture of any kind but a litter of rags in one corner, which evidently served the old beggar as a bed.

The old man, when he had entered and lighted his lamp, pushed some of these rags aside with trembling hands, and raising a piece of the dirty and half-rotten flooring, he produced a stout and rather heavy hag. Out of this he took in succession several smaller hags, each evidently full of money; and having pleased himself with handling and gloating over his treasure, he added the coin which the Caliph had just given him, together with several others, the produce of that day's exertion, to the contents of one of the bags, and then carefully replaced the whole in its hiding-place, and covering the board again with the rags, lay down to sleep.

Three hours had now elapsed since the Caliph had anointed his eyes with the magical ointment, and the increased power of vision it conferred upon him began rapidly to vanish. Therefore he turned to go back to the palace, laughing within himself as he thought, "Thieves, beggars, and misers, a goodly company have I become acquainted with to-night!"

The streets were now silent and deserted, and all honest people were already in bed and asleep. But he had not proceeded far before he came to a door which was partly open, and through which he could see across a courtyard a great house brightly lighted, and could hear the voices of the guests within very merrily laughing and conversing. Moreover, a very delicious aroma of cooking assailed his nostrils, and reminded him that he was both hungry and tired. Bidding Giafer knock at the door, he told the slave who appeared to go to his master and say that two merchants, strangers in the town, and who had lost their way, craved to be partakers of his hospitality.

Returning shortly, the slave conducted them across the courtyard, and ushered them into a room handsomely furnished and brilliantly lighted, in which ten young men were seated, all very merry and evidently enjoying a plentiful supper, which they washed down with good wine.

One of the ten, evidently the host, a young man with finely formed features and black eyes, bright and piercing, addressed the Caliph and Giafer as they entered.

"Merchants and strangers," said he, "you are welcome to our party. Be seated, I pray you, and by your diligence in eating and drinking, endeavour to make up for the time you have lost."

Then the company having saluted them, and they having saluted the company, by placing their hands across the breast and bowing the head in the customary manner, the Caliph and Grand Vizier sat down, and the slaves who waited continued from time to time to bring them plenty both to eat and to drink.