"Of all the remarkable happenings!" exclaimed Mrs. Slater.

"Just like a fairy story!" laughed Sue.

"Did Sandy drop the pocketbook in the boat?" asked Bunny.

"I think that must be how it happened," answered Mr. Ravenwood, as he looked in the purse for anything more that it might contain; but there was nothing. "Do you want it saved?" he asked Mrs. Brown.

"No, it was an old pocketbook and you might as well toss it overboard," she answered. "I have all I wanted out of it—my diamond ring."

"Well, we got the money back, too," said Bunny. "Can you really wash a five-dollar bill?" he asked.

"Oh, yes," Uncle Tad assured him. "I'll wash this and iron it and make it look like new." And this he did a little later.

The old pocketbook was tossed overboard. It sank in a circle of rainbow colors, caused by the oil on it, and as the boat started off again Mrs. Brown looked joyfully at her diamond ring so strangely recovered.

"I see how it must have happened," said Mr. Ravenwood, as they landed at the dock. "Sandy must have had the pocketbook in his mouth when he leaped aboard my boat, but I didn't notice it, as my back was turned. He must have dropped it inside the engine box, which was open, and it has been there ever since. To-day it worked its way under the wheel and stopped the machinery, or I might not have found it until I laid the boat up for the winter, when I always take the engine out to clean it."

"I think that is how it really did happen," said Mrs. Slater. "Sandy, you were a bad dog to take the pocketbook!" and she shook her finger at him. Sandy hung his head for a moment, but he was soon wagging his tail joyfully as Bunny, Sue, and Harry petted him.