Indeed, his spirits seemed to have returned with strange vivacity as they walked back to the hotel, and he asked many other questions regarding Mrs. Van Loo and her daughter, and particularly if the daughter had also been abroad.  When they reached the veranda they found a few early risers eagerly reading the Sacramento papers, which had just arrived, or, in little knots, discussing the news.  Indeed, they would probably have stopped Barker and his companion had not Barker, anxious to relieve his friend’s curiosity, hurried with him at once to the manager’s office.

“Can you tell me exactly when you expect Mrs. Van Loo to return?” asked Barker quickly.

The manager with difficulty detached himself from the newspaper which he, too, was anxiously perusing, and said, with a peculiar smile, “Well no! she was to return to-day, but if you’re wanting to keep her rooms, I should say there wouldn’t be any trouble about it, as she’ll hardly be coming back here now.  She’s rather high and mighty in style, I know, and a determined sort of critter, but I reckon she and her daughter wouldn’t care much to be waltzing round in public after what has happened.”

“I don’t understand you,” said Demorest impatiently.  “What has happened?”

“Haven’t you heard the news?” said the manager in surprise.  “It’s in all the Sacramento papers.  Van Loo is a defaulter—­has hypothecated everything he had and skedaddled.”

Barker started.  He was not thinking of the loss of his wife’s money—­only of her disappointment and mortification over it.  Poor girl!  Perhaps she was also worrying over his resentment,—­as if she did not know him!  He would go to her at once at Boomville.  Then he remembered that she was coming with Mrs. Horncastle, and might be already on her way here by rail or coach, and he would miss her.  Demorest in the meantime had seized a paper, and was intently reading it.

“There’s bad news, too, for your friend, your old partner,” said the manager half sympathetically, half interrogatively.  “There has been a drop out in everything the bank is carrying, and everybody is unloading.  Two firms failed in ’Frisco yesterday that were carrying things for the bank, and have thrown everything back on it.  There was an awful panic last night, and they say none of the big speculators know where they stand.  Three of our best customers in the hotel rushed off to the bay this morning, but Stacy himself started before daylight, and got the through night express to stop for him on the Divide on signal.  Shall I send any telegrams that may come to your room?”

Demorest knew that the manager suspected him of being interested in the bank, and understood the purport of the question.  He answered, with calm surprise, that he was expecting no telegrams, and added, “But if Mrs. Van Loo returns I beg you to at once let me know,” and taking Barker’s arm he went in to breakfast.  Seated by themselves, Demorest looked at his companion.  “I’m afraid, Barker boy, that this thing is more serious to Jim than we expected last night, or than he cared to tell us.  And you, old man, I fear are hurt a little by Van Loo’s flight.  He had some money of your wife’s, hadn’t he?”