As a natural consequence, he rapidly grew in favour with his superiors, and had many an encouraging smile from Mr. Drummond, who heard good reports of him from time to time. One especially welcome outcome of this improved state of affairs was that Morley's malice received such a snubbing on all sides that he positively had to hold his bitter tongue and leave Terry in peace, to the great relief of the latter, who now had smooth going in every way, and was as happy a boy as walked the streets of Halifax.

It was quite a week after his return before he heard anything more of Captain Afleck, and then there came a letter from him at Boston to the firm inquiring if they knew anything about Terry, as he had been searching all over the city for him, but could find no trace of him whatever.

Terry was considerably amused when this was told him, and with the aid of Mr. Hobart concocted quite a humorous reply, in which he poked fun at the captain for not knowing how to take care of himself. In response to this the captain wrote expressing his relief at learning that Terry was back in his place, and stating that now his mind was at rest about him he would remain in Boston to complete his claim against the insurance company, so that Halifax would not be likely to see him for some little time.

One thing that gave Terry increasing concern was the squalor of their abode in Blind Alley. With the help of his wages much better quarters could be obtained; but Black Mike would not stir, and of course Mrs. Ahearn would not leave him, shamefully as he treated her. So Terry had perforce to be patient, awaiting the time when his father's mind might change, or some other way out of the difficulty be found.

Matters had been going on in this pleasant fashion for a month or so, when one afternoon in the early autumn the whole establishment of Drummond and Brown, from the grave old partners down to Terry, was thrown into a state of excitement by the news coming down from the signal-station on the citadel that a blockade-runner had been chased right to the mouth of the harbour, and was now steaming up at a tremendous rate with all her flags flying in token of her fortunate escape.

Long Wharf was quickly crowded with eager sightseers, and presently the beautiful vessel came into view, the white foam curling back from her sharp bow as she ploughed a deep furrow through the yielding water. Coming off the wharf she slowed up, described a graceful semicircle, and then glided smoothly into dock amid the cheers of the assembled people, who were always glad to welcome a blockade-runner from motives of interest no less than of sympathy.

Hearty responses came from the deck of the blockade-runner, which was no other than the famous Colonel Lamb—the largest, costliest, and swiftest of the whole fleet engaged in that dangerous work. She had brought her cargo of cotton through many perils, and great would be the profit of those interested in the venture.

While the people were fraternizing with the crew, and asking them a thousand questions about their run, the captain of the blockade-runner came off, accompanied by his first officer, who bore a black bag evidently filled with something heavy; and after greetings had been exchanged with Mr. Drummond and Mr. Brown, the four men went on up to the office.

Mr. Hobart, noticing this, called to Terry, who stood near him, watching all that was going on with deep interest, and thinking of the rebel steamers of a very different type that he had seen in Hampton Roads, "Come along, Terry; we may be wanted at the office." And so they two followed.

At the office the four gentlemen had been closeted for nearly an hour, when Mr. Hobart was called in to receive some instructions with reference to the disposition of the black bag. But just as Mr. Drummond was about to give them, a shout of "Fire" came suddenly up from the wharf, and there was a rush of men towards the end of the line of warehouses.