After Krook's mysterious death, the neighbours are surprised to see two very old people move into the Rag and Bottle Market. They are Mr Smallweed, the money-lender, and his wife, Mr Krook's sister.

After Krook's death and the disappearance of the packet of letters, Mr Guppy has lost hope of discovering more about Miss Esther Summerson's background. With a sad heart, he returns to Lady Dedlock's London house.

'Lady Dedlock,' begins Guppy politely, 'I have come to report that I have not been able to get the letters which we spoke about. I believe they were destroyed in a strange fire when a man named Krook died.'

Tulkinghorn is at the door of the library as Guppy departs. What does he know about the business between My Lady and this young man?

***

Soon after the death of Mr Krook, old Mr Smallweed orders Mr George Rouncewell to pay the total amount of his debt immediately. George's oldest and best friend, Mr Matthew Bagnet, signed the papers for the loan and will have to pay the debt if George cannot. The two men hurry to Smallweed's home to find out what is happening, but Smallweed refuses to discuss the matter with them and sends them to his lawyer.

After making many excuses, Mr Tulkinghorn's servant finally lets George into the lawyer's office. Mr Bagnet waits anxiously outside.

'Mr Rouncewell, you must pay your debts or accept your punishment. If you can't pay, then your friend must pay. His signature is on the loan,' says Tulkinghorn coldly.

'Mr Tulkinghorn, neither of us has this sum of money. Smallweed has changed the conditions of the loan,' says George angrily. 'I will not ruin my friend and his family. You wanted a piece of paper from me the other day. I will give it to you to solve this problem.'

'Mr Rouncewell,' the lawyer begins coolly, 'if you choose to leave your letter from Captain Hawdon with me, I can return the conditions of your loan to what they were, and I can free Mr Bagnet from any responsibility towards the loan in the future. Do you agree?'

The old soldier puts his hand in his pocket and produces a letter from Hawdon. 'I must,' he says angrily.

***

Mr Tulkinghorn shares with no one the information that he has about Captain Hawdon until one destructive evening at Chesney Wold.

The gentlemen discuss business and politics after dinner. Sir Leicester is worried that men from a lower social class are entering parliament.