This story is familiar to all the hearers, and they put the correct questions to Macey. The landlord asks about the land where Mr. Lammeter settled, the Warrens. Macey says it once belonged to a London tailor who tried to make his son a country gentlemen there. After the boy died, the father died raving and left all his property to a London charity. His ghost is said to haunt the stables yet.
Mr. Dowlas, the farrier, has only scorn for ghosts, but several others pity his lack of comprehension. The landlord compromises with the argument that the ability to see ghosts is like a nose for smelling cheese: some have it and some don't.
At this moment, Silas is seen standing within the room, and even the farrier is startled by the feeling that a ghost has come among them. At last the landlord asks Silas what his business is. Silas exclaims that he has been robbed. Seeing Jem Rodney there, he demands his money back. Rodney denies taking it. At last Silas is made to sit down and tell his story. In the end, he apologizes to Jem for accusing him.
Silas is so distraught that there is immediate sympathy for him, and all suspicion vanishes. The farrier proposes that "two of the sensiblest o' the company" should go for the constable, who is ill in bed, and have one appointed as a deputy. The farrier clearly expects to be deputized himself. However, Mr. Macey recalls that his father told him that no doctor could be a constable, and even a cow doctor is a doctor. The farrier doesn't wish to decline the title of doctor, but argues that the law means that a doctor doesn't have to serve if he wishes not to. Nevertheless, he is driven by Macey's "merciless reasoning" to deny that he wants to be the constable. The landlord settles the dispute by persuading the farrier to go as the second man.
