At one time he took up his abode in a ruined house, under the same roof as a Creole fortune-teller. He describes her room with its darkened windows, skulls and crossbones, and lamp lit in front of a mysterious shrine. This was quite sufficient to associate his name with hers, and many were the unfounded rumours—Nemesis of the unfortunate episode with Althea Foley at Cincinnati—which floated northwards regarding the manner of his life.

Some members of a Brahminical Society visited New Orleans about this time. Needless to say that Hearn immediately foregathered with them, and in leisure hours took to studying the theories of the East, the poetry of ancient India, the teachings of the wise concerning "absorption and emotion, the illusions of existence, and happiness as the equivalent of annihilation," maintaining that Buddhism was wiser than the wisest of occidental faiths. He astonished the readers of the Item by weird and mystical articles on the subject of the Orient and oriental creeds, considerably increasing the sale of the little paper, and drawing attention, amongst cultured circles in New Orleans, to his own genius.

The routine of his life at this time is given in letters written to his "old Dad" and his friend, Krehbiel.

The same ascetic scorn for material comfort, heritage of his oriental ancestry, seems to have distinguished him at this period in New Orleans, as later in Japan. The early cup of coffee, the morning's work at the office, "concocting devilment" for the Item, his Spanish lessons with José de Jesus y Preciado, the "peripatetic blasphemy," as he named him afterwards, dinner at a Chinese restaurant for an infinitesimal sum, an hour or two spent at second-hand book-stalls, and home to bed. There is, I am told, an individual, Armand Hawkins by name, owner of an ancient book-store at New Orleans, still alive, who remembers the curious little genius, with his prominent eyes, wonderful knowledge on all sorts of out-of-the-way subjects recounted in a soft, musical voice, who used to come almost daily to visit his book-store. He it was who enabled Hearn to get together the library about which there has been so much discussion since his death. Next to his love of buying old books, Hearn's great indulgence seems to have been smoking, not cigars, but pipes of every make and description.

The glimpses we get of him from his own letters and from reminiscences collected from various people in New Orleans all give the same impression. A Bohemian love of vagabondage, picking up impressions here and there, some of which were set down in pencil, some in ink; as far as his eyesight would permit, many were the sketches made at this time. None of them have been preserved, except the very clever Mephistophelian one sent to Mr. Watkin and reproduced in the volume entitled "Letters from the Raven." "He was a gifted creature," says a lady who knew him at this time. "He came fluttering in and out of our house like a shy moth, and was adored by my children."

He had no ambitions, no loves, no anxieties, sometimes a vague unrest without a motive, sometimes a feeling as if his heart were winged and trying to soar; sometimes a half-crazy passion for a great night with wine and women and music; but the wandering passion was strongest of all, and he felt no inclination to avail himself of the only anchor which keeps the ship of a man's life in port.... Nights were so liquid with tropic moonlight, days so splendid with green and gold, summer so languid with perfume and warmth, that he hardly knew whether he was dreaming or awake.

In 1881, Hearn succeeded in becoming a member of the staff of the leading New Orleans paper, the Times Democrat, "the largest paper," he tells his sister, "in the Southern States." He now seemed to have entered on a halcyon period of life—congenial society, romantic and interesting surroundings. Penetrated with enthusiasm for the modern French literary school as he was, he here met intellects and temperaments akin to his own. Now he was enabled to get his translations from Gautier and Baudelaire printed, and read for the first time by an appreciative public. "Everybody was kind," he tells his sister; "I became well and strong, lived steadily, spent my salary on books. I was thus able to make up for my deficiencies of education.... I had only a few hours of work each day;—plenty of time to study. I wrote novels and other books which literary circles approved of."

With Page Baker, the owner and editor-in-chief of the Times Democrat, he formed a salutary and enduring friendship. The very difference in character between the two seems to have made the bond all the more enduring. Page Baker was a man of great business capacity, and at the same time keen discrimination in literary affairs. From the first he conceived the highest opinion of Hearn's literary ability. However fantastic or out-of-the-way his contributions to the columns of the Times Democrat, they were always inserted without elision. Years afterwards, writing to him from Japan, Hearn declares, in answer to a panegyric written by Page Baker on some of his Japanese books, that the most delightful criticisms he ever had were Page Baker's own readings aloud of his vagaries in the "T. D." office, after the proofs came down, just fresh from the composition room, with the wet, sharp, inky smell still on the paper. Baker, apparently, in 1893 sent him substantial help, and Hearn writes thanking him from the bottom of his much-scarified heart. Often amidst the cramped, austere conditions of his existence in Japan, he recalled these days of communion with congenial spirits at New Orleans, and work with his colleagues at the Times Democrat office. "Ghosts! After getting your letter last night I dreamed. Do you remember that splendid Creole who used to be your city editor—John——?—is it not a sin that I have forgotten his name? He sat in a big chair in the old office, and told me wonderful things, which I could not recall on waking."

In a letter dated July 7, 1882, Hearn tells Mr. Watkin that he had entered into an arrangement with Worthington, the publisher, for the issuing of his translation of Gautier's stories made at Cincinnati. It was to cost him one hundred and fifty dollars, but there was an understanding that this money was to be repaid by royalties on the sale of the book and any extra profits. He announced his intention of going North in a few months by way of Cincinnati, as he wished to see Worthington about his new publication. Though he was making, he said, the respectable wage of thirty dollars a week for five hours' work a day, he felt enervated by the climate, incapable of any long stretch of work, and thought change to a northern climate for a bit might stimulate his intellectual powers. He then touched on the changes that passing years had wrought in his outlook on life. "Less despondent, but less hopeful; wiser a little and more silent; less nervous, but less merry; ... not strictly economical, but coming to it steadily." His horizons were widening, the accomplishment of a fixed purpose in life was really the only pleasurable experience, and the grasp of a friendly hand the only real satisfaction of an existence that wisdom declared a delusion and a snare.

Hearn at times indulged in exaggerated fits of economy, the one thought that animated him being the idea of freeing himself from the yoke of dependence on the whims of employers—from the harness of journalism. He made up his mind to keep house for himself, so hired a room in the northern end of the French quarter, and purchased a complete set of cooking utensils and kitchen ware. He succeeded in reducing his expenses to two dollars a week, and kept them at that (exclusive of rent), although his salary rose to thirty dollars a week. Having saved a respectable sum, he formed the fantastical idea of trying to keep a restaurant, run on the lines of the cheap Spanish and Chinese restaurants he had been wont to frequent. "Business—ye Antiquities"; hard, practical business! he told Krehbiel; honourable, respectable business, but devoid of dreamful illusions. "Alas, this is no world for dreaming."