"I have seen this watch before," she replied, stopping to think. "Where did your mother get this watch, Katy?" she asked, as it occurred to her that she might be arriving at a conclusion too suddenly.

"It was my father's."

"Where did your father get it? Did you ever hear your mother say?"

"Yes, ma'am; her father, who was a rich Liverpool merchant, gave it to her husband, my father," replied Katy, who felt justified in revealing what her mother had told her to keep secret.

"Mercy!" gasped Mrs. Gordon, almost overcome by her emotions.

"What is the matter, mother? What has all this to do with you?" asked Grace, anxiously.

"Come here, Katy, my child," continued Mrs. Gordon, as she drew the little candy merchant to her side, and warmly embraced her. "Your mother, Katy, is my sister, I have scarcely a doubt."

"Why, mother! Is it possible?" exclaimed Grace.

"It is even so. Mrs. Redburn, whose name we have often heard mentioned without thinking it might be the wife of John Redburn, my father's clerk, is my sister. I had given her up, and have regarded her as dead for more than ten years. But, Grace, get my things, and I will go to her at once."

"Is that your portrait, ma'am?" asked Katy, pointing to the picture of the mischievous lady.