three days after this conversation the younger prince shadursky dined with sergei antonovitch kovroff.

that morning he received a note from kovroff, in which the worthy sergei complained of ill health and begged the prince to come and dine with him and cheer him up.

the prince complied with his request, and appearing at the appointed time found count kallash alone with his host.

among other gossip, the prince announced that he expected shortly to go to switzerland, as he had bad reports of the health of his mother, who was in geneva.

at this news kallash glanced significantly toward kovroff.

passing from topic to topic, the conversation finally turned to the financial position of russia. sergei antonovitch, according to his expression, "went to the root of the matter," and indicated the "source of the evil," very frankly attacking the policy of the government, which did everything to discourage gold mining, hedging round this most important industry with all kinds of difficulties, and practically prohibiting the free production of the precious metals by laying on it a dead weight of costly formalities.

"i have facts ready to hand," he went on, summing up his argument. "i have an acquaintance here, an employee of one of the best-known men in the gold-mining industry." here kovroff mentioned a well- known name. "he is now in st. petersburg. well, a few days ago he suddenly came to me as if he had something weighing on his mind. and i have had business relations with him in times past. well, what do you think? he suddenly made me a proposal, secretly of course; would i not take some gold dust off his hands? you must know that these trusted employees every year bring several hundred pounds of gold from asia, and of course it stands to reason that they cannot get rid of it in the ordinary way, but smuggle it through private individuals. it is uncommonly profitable for the purchasers, because they buy far below the market rates. so there are plenty of purchasers. several of the leading jewelers" (and here he named three or four of the best-known firms) "never refuse such a deal, and last year a banking house in berlin bought a hundred pounds' weight of gold through agents here. well, this same employee, my acquaintance, is looking for an opportunity to get rid of his wares. and he tells me he managed to bring in about forty pounds of gold, if not more. i introduce this fact to illustrate the difficulties put in the way of enterprise by our intelligent government."

shadursky did not greatly occupy himself with serious questions and he was totally ignorant of all details of financial undertakings. it was, therefore, perfectly easy for sergei antonovitch to assume a tone of solid, practical sense, which imposed completely on the young prince. young shadursky, from politeness, and to prove his worldly wisdom, assented to kovroff's statements with equal decision. all the same, from this conversation, he quite clearly seized on the idea that under certain circumstances it would be possible to buy gold at a much lower price than that demanded by the imperial bank. and this was just the thought which kallash and kovroff wished to sow in the young prince's mind.

"of course, i myself do not go in for that kind of business," went on kovroff carelessly, "and so i could not give my friend any help. but if some one were going abroad, for instance, he might well risk such an operation, which would pay him a very handsome profit."

"how so? in what way?" asked shadursky.

"very simply. you buy the goods here, as i already said, much below the government price. so that to begin with you make a very profitable bargain. then you go abroad with your wares and there, as soon as the exchange value of gold goes up, you can sell it at the nearest bank. i know, for instance, that the agent of the ——- bank" (and he mentioned a name well known in st. petersburg) made many a pretty penny for himself by just such a deal. this is how it was: he bought gold dust for forty thousand rubles, and six weeks later got rid of it in hamburg for sixty thousand. whatever you may say, fifty per cent on your capital in a month and a half is pretty good business."

"deuce take it! a pretty profitable bargain, without a doubt!" cried shadursky, jumping from his chair. "it would just suit me! i could get rid of it in geneva or paris," he went on in a jesting tone.

"what do you think? of course!" sergei antonovitch took him up, but in a serious tone. "you or some one else—in any case it would be a good bargain. for my acquaintance has to go back to asia, and has only a few days to spare. he doesn't know where to turn and rather than take his gold back with him, he would willingly let it go at an even lower rate than the smugglers generally ask. if i had enough free cash i would go in for it myself."

"it looks a good proposition," commented count kallash.

"it is certainly very enticing; what do you think?" said prince

shadursky interrogatively, folding his arms.

"hm—yes! very enticing," answered kovroff. "a fine chance for anyone who has the money."

"i would not object! i would not object!" protested shadursky.

"suppose you let me become acquainted with your friend."

"you? well—" and kovroff considered; "if you wish. why not? only i warn you, first, if you are going to buy, buy quickly, for my friend can't wait; and secondly, keep the matter a complete secret, for very unpleasant results might follow."

"that goes without saying. that stands to reason," assented shadursky. "i can get the money at once and i am just going abroad, in a day or two at the latest. so it would be foolish to miss such a chance. so it is a bargain?" and he held out his hand to kovroff.

"how a bargain?" objected the cautious sergei antonovitch. "i am not personally concerned in the matter, and you must admit, my dear prince, that i can make no promises for my acquaintance."

"i don't mean that!" cried shadursky. "i only ask you to arrange for me to meet him. bring us together—and drop him a hint that i do not object to buying his wares. you will confer a great obligation on me."

"oh, that is quite a different matter. that i can always do; the more so, because we are such good friends. why should i not do you such a trifling service? as far as an introduction is concerned, you may count on it."

and they cordially shook each other by the hand.