"Now," said Chiau to the old gentleman, "the transformation is complete. Take the children away and hide them in the remotest and most inaccessible room that you have in your house. Let them be seen by no chattering woman or servant who might divulge our secret, so that in some way or other it might reach the ears of the Demon, and put him on his guard. Remember that from this moment these little ones are not supposed to exist, but that we are your grand-children who are to be taken to the temple to-morrow morning at break of day."

Just as the eastern sky showed the first touch of colour, two sedan-chairs were brought up to the door to carry the two victims away to be devoured by the Demon. A few frightened-looking neighbours peered through the gloom to catch a last glimpse of the children, but not one of them had the least suspicion that the boy and girl were really fairies who were about to wage a deadly battle with the Demon in order to deliver them from the curse under which they lived.

No sooner had the children been put into the temple, where a dim rush-light did but serve to disclose the gloom, and the doors had been closed with a bang, than the chair-bearers rushed away in fear for their very lives.

An instant afterwards a hideous, gigantic form emerged from an inner room and advanced towards the children. The Demon was surprised, however, to find that on this occasion the little victims did not exhibit any signs of alarm, as had always been the case hitherto, but seemed to be calmly awaiting his approach. There was no symptom of fear about them, and not a cry of terror broke from their lips; but with a fearless and composed mien they gazed upon him as he advanced.

Hesitating for a moment, as if to measure the foe which he began to fear might lie concealed beneath the figures of the boy and girl before him, the Demon's great fiery eyes began to flash with deadly passion as he saw the two little ones gradually expand in size, until they were transformed into beings as powerful and as mighty as himself. He knew at once that he had been outwitted, and that he must now battle for his very life; so, drawing a sword which had always stood him in good stead, he rushed upon the two who faced him so calmly and with such apparent confidence in themselves.

Chiau and Chu were all ready for the fray, and with weapons firmly gripped and with hearts made strong by the consciousness of the justice of their cause, they awaited the onslaught of the Demon.

And what a battle it was that then ensued in the dim and shadowy temple! It was a conflict of great and deadly significance, waged on one side for the deliverance of helpless childhood, and on the other for the basest schemes that the spirits of evil could devise. It was a battle royal, in which no quarter was either asked or given. The clash of weapons, and sounds unfamiliar to the human ear, and groans and cries which seemed to come from a lost soul, filled the temple with their hideous uproar.

At last the Demon, who seemed to have been grievously wounded, though by his magic art he had caused his wounds to be instantly healed, began to see that the day was going against him. One more mighty lunge with his broadsword, and one more furious onset, and his craven heart failed him. With a cry of despair he fled from the temple, and plunged headlong into the river flowing by its walls.

Great were the rejoicings when Chiau and Chu returned to report to Sam-Chung the glorious victory they had gained over the Demon. Laughter and rejoicing were heard in every home, and men and women assembled in front of their doors and at the corners of the narrow alley-ways to congratulate each other on the great deliverance which that day had come to them and to their children. The dread of the Demon had already vanished, and a feeling of freedom so inspired the men of the village that as if by a common impulse, they rushed impetuously down to where the temple stood, and in the course of a few hours every vestige of it had disappeared beneath the waters into which the Demon had plunged.

After his great defeat the baffled spirit made his way to the grotto beneath the waters, where he and the other demons had taken up their abode. A general council was called to devise plans to wipe out the disgrace which had been sustained, and to regain the power that had slipped from the Demon's grasp. They wished also to visit Sam-Chung with condign punishment which would render him helpless for the future.