"She was in my employ many years ago. She came on board of my yacht last Thursday, and told me her husband would lose his house if a mortgage upon it of five hundred dollars was not paid; that the mortgage was already foreclosed, and the house was to be advertised for sale. Under these circumstances, I loaned her the money to save her from being turned out of house and home," replied Colonel Montague, deliberately, but with more agitation than the case seemed to warrant.

"You are confident that this is the same bill?" added Squire Norwood.

"Perfectly confident; I declare upon oath that it is the same bill."

"Now, Colonel Montague, where did you obtain this bill?"

"At Bar Harbor, Mount Desert."

"Of whom?"

"I have really forgotten the name of the gentleman, but he came to Mount Desert in a small yacht, and had a very rough passage. He was quite sick, and told me he was disgusted with yachting in a small craft. He had just sold his boat for half her cost, and had received this five hundred dollar bill in payment for her, which he wished me to change for him, and I gave him smaller bills for it."

"Do you know the boat he sold?" asked Mr. Simonton.

"I never saw her, that I am aware of."

Squire Norwood ordered Mrs. Taylor to be discharged; Squire Gilfilian suggested that Bobtail was the purchaser of the yacht, but it was proved that he had not been absent from Camden even an hour before the time when Colonel Montague obtained the bill, and he was also discharged. When the examination was finished, Captain Chinks quietly stole out of the office, evidently dissatisfied with the result. Little Bobtail was warmly congratulated by all his friends, old and new, on the issue, and he was hastening away, in order to take out his party in the Skylark, when Mr. Hines stopped him.