"I should think it highly probable, sir," was Sage's response.

"And what are we to say?" demanded Mr. Llewellyn John. He was a keen politician, and saw that the situation might be fraught with considerable difficulties.

"Acknowledge that they are, sir," was the response.

"Acknowledge it!" cried Mr. Llewellyn John.

"Certainly, sir."

"Mr. Sage," said Mr. Llewellyn John severely, "you do not appear to appreciate that this may seriously compromise the Government." Then turning to Colonel Walton he continued: "Hitherto you have been given a free hand, now I must ask you to explain why you are offering these large rewards. You first of all suggested £1,000, rising daily from £1,000 to £10,000. In two days it has amounted to £20,000."

"It won't rise any higher, sir. It has reached the limit."

"That is not the point," said Mr. Llewellyn John. "I want to know why it is that you are advertising to Germany that we want John Dene. It is an obvious confession of weakness." He made a quick nervous movement with his right hand, he was far from easy in his mind.

Malcolm Sage continued to examine his finger-nails with great intentness.

Seeing that he made no indication of replying, Mr. Llewellyn John continued: