“That is a plausible theory, but—” It was Connor’s turn to hesitate, and the inspector broke the silence.

“It is strange that the real owner doesn’t claim the bag, considering that its disappearance involves the loss of three hundred dollars,” he said thoughtfully. “It’s that puzzle which has brought me to you. Few people lose such a sum of money in a street car without raising a fuss about it.”

“My dear North, the presence of the money is obviously the reason why the bag goes unclaimed,” retorted Connor, and the inspector leaned forward excitedly.

“You mean—?”

“That many of the bank notes are counterfeit. The owner of that bag will be the last to claim it. Well, Neale, what have you to report?”

The operative advanced to the desk and placed the Treasury notes again on the desk with memorandum attached.

“One hundred and seventy-five dollars of this is counterfeit.” Neale selected a ten-dollar note and showed it to Chief Connor. “This is apparently printed from photomechanical plates and retouched with a graver. It is an exceedingly dangerous counterfeit.”

Chief Connor nodded assent as he examined the note, then looked inquiringly at his assistant. “Well, Neale?”

“‘Gentleman Charlie,’” was the latter’s only comment, and Chief Connor smiled.

“Exactly, Neale. Issue special warnings to all banks. ‘Gentleman Charlie’ has resumed operations.”