During this singular conversation Steinfeld had sat, leaning back in his large elbow-chair, in an attitude of easy indifference—one slippered foot thrown carelessly over the other, and his hands thrust into the pockets of his damask dressing-gown. On receiving this last outrageous insult, his lip blanched with passion, his whole person quivered as with an electric shock, and he half rose from his semi-recumbent position. But the baron was a man of vast self-command; one of those cool-headed cool-hearted egotists who rarely act upon impulse, or compromise their interests by ill-timed impetuosity. The first choleric movement, prompting him to throw Fatello downstairs, was checked with wonderful promptitude, and with little appearance of effort. In reality, however, the effort was a violent one. As a soldier at the triangles bites a bullet with the rage of pain, so Steinfeld clenched his hands till the strong sharp nails almost cut into the palm. As he did so, a paper in his pocket rustled against his knuckles. It was the note so mysteriously conveyed to him at the masquerade, and which he had been pondering when Fatello was announced. To one so quick-witted, the mere touch of the paper was as suggestive as a volume of sage counsels. In an instant every sign of annoyance disappeared from his features; he rose quietly from his seat, and with easy dignity and an urbane countenance confronted Fatello, who stood gloomy and lowering before the fire.

“I see, M. Fatello,” he said, “that you are bent upon our cutting each other’s throats; but, strange as it may seem, after the terms you have employed, I still hope to avert the unpleasant necessity. For one moment moderate your language, and give me time for brief explanation. If I rightly understand you, it is from your own observations you thus accuse me; and I presume you did me the honour of a personal surveillance at last night’s ball?”

Fatello, his violence checked for the moment from further outbreak by the baron’s courtesy and coolness, made a gesture of sullen assent.

“And that you overheard a part, but not the whole, of my conversation with the black domino in question?”

“I heard enough, and too much,” replied Fatello, with a savage scowl at his interlocutor. “This is idle talk, mere gain of time. Baron Steinfeld!” cried the banker, in a voice that again rose high above its usual pitch, “you are——”

“Stop!” interrupted Steinfeld, speaking very quickly, but with an extraordinary and commanding calmness, which again had its effect. “Descend not to invective, M. Fatello. There is always time for violence. Hear reason. You are in error, an error easily explained. I certainly saw Madame Fatello at the ball, saw and spoke with her—patience, sir, and hear me! But the domino, of my conversation with whom you heard a part, was not Madame Fatello, but Mademoiselle Gonfalon. You take little interest in the frivolities of a masquerade, and are possibly unaware that the two ladies’ dresses were exactly similar. You can have heard our conversation but imperfectly, or you would not have wronged me by this suspicion.”

Whilst uttering these last sentences, Steinfeld redoubled the keenness of the scrutiny with which he regarded the banker’s uncomely and agitated physiognomy. But although piquing himself, as a former diplomatist, on skill in reading men’s thoughts through their faces, he was unable to decipher the expression of Fatello’s countenance on receiving this plausible explanation of the error into which he had been led by the sisters’ identity of costume. As he proceeded with it, the banker’s lips, slightly parting, gave his face an air of stupefied wonderment, in addition to its previously inflamed and angry aspect. When Steinfeld concluded an explanation uttered with every appearance of sincerity and candour, and in that flexible and affable tone which, when he chose to employ it, imparted to his words a peculiarly seductive and persuasive charm, Fatello’s lips were again firmly closed, and curled with a curious and inexplicable smile. This faded away; he struck his left hand against his forehead, and remained for some moments plunged in thought, as if he hastily retraced in his memory what he had heard the night before, to see how it tallied with the explanation just given him. Thus, at least, Steinfeld interpreted his manner; and although the Austrian’s countenance preserved its serenity, his heart throbbed violently against his ribs during the banker’s brief cogitation. The result of this was evidently satisfactory to Fatello, from whose brow, when his hand again dropped by his side, the lowering cloud had disappeared, replaced by affability and regret.

“I see,” he said, with better grace than might have been expected from him, and taking a step towards Steinfeld, “that nothing remains for me but to implore your pardon, baron, for my unwarrantable suspicions, and for the harsh and unbecoming expressions into which they betrayed me. Jealousy is an evil counsellor, and blinds to the simplest truths. I scarce dare hope you will forgive my intemperate conduct, without exacting the hostile meeting for which I was just now as eager as I at present am to avoid it. If you insist I must not refuse, but I give you my word that if I have a duel with you to-day, nothing shall induce me to depart from the defensive.”

“I should be unreasonable,” replied Steinfeld, graciously, “if I exacted ampler satisfaction than this handsome apology, for what, after all, was no unnatural misconception. Ten years ago I might have been more punctilious, but after three or four encounters of the kind, a duel avoided, when its real motive is removed, is a credit to a man’s good sense, and no slur upon his courage.”

“No one will ever attack yours, my dear baron,” said Fatello. “I only hope you will always keep what has passed between us this morning as profound a secret as I, for my own sake, certainly shall do. I am by no means disposed to boast of my part in the affair.”