you are recent arrivals?"

"Not more than three hours since," I replied, returning his salutation.

"I believe you have stated the hours correctly," he returned, dryly; "we
live fast, here in Ballarat, yet I think you have outstripped us by your
activity."

"No one can regret the circumstance which has taken place more than
myself," replied Fred.

"Perhaps not," answered the dark man with a grim smile; and while he was
speaking, I noticed that those in the saloon edged towards us for the
purpose of hearing our conversation.

"The quarrel was occasioned by a dispute about horses, I believe?" the
little man said.

"You are correct in your suppositions," returned Fred.

"Will you be kind enough to inform me how those animals came in your
possession?" interrogated the stranger.

"I don't know what business it is of yours," returned Fred, with some
asperity; "but as we seek to disguise nothing, I will frankly inform you
that we purchased the horses and paid for them."

"A likely story, truly; I never yet knew the police of Melbourne to sell
their spare horses."

At these words, we saw that the crowd looked at each other suspiciously,
and appeared to regard us as being guilty of some serious crime.

"When you show us your authority for asking questions, we will explain
matters." I replied, after a moment's hesitation.

"Perhaps you will explain before it suits your convenience," the little
man said, ironically; "I heard of the quarrel and the duel which one of
you has been engaged in, and while investigating, I took occasion to
look at the horses which you rode. You will imagine that I was surprised
to discover that each animal had upon his hind quarter the private mark
of the police of Melbourne. I repeat, sir, that the authorities of that
city are not in the habit of selling horses to adventurers."

The little man spoke confidently, and glanced around the crowd to see if
his words were having an effect upon his audience. Thinking that he
would complete our humiliation, he continued:--

"Our worthy miners here at Ballarat, have sometimes been put to great
trouble by losing the dust which they have sent to the cities, and I
think that I am right in demanding, in their name, a strict account of
all suspicious people who visit us."

This was a shrewd bit of acting on the part of the little man, for he
instantly carried all the miners with him. Hardly one present but had
suffered at the hands of the bushranger