While still visiting with Carry, Lily goes for a walk with Rosedale. Lily considers her past experiences of setting up courtships that never reach their fulfillment in engagement. She steels herself to not ruin her current opportunity with Rosedale.
She tells Rosedale that she will marry him, despite the fact that he has not repeated his proposal. He reveals that he had no intention of repeating the proposal, and she responds that she never meant her initial refusal to seem as if it were a final decision.
Rosedale admits his love for Lily, but also confesses that he does not wish to be associated with the scandal surrounding Lily and Dorset. He tells her that he does not believe the stories that he has heard about the affair, but that if he marries her while she is still surrounded with scandal, he will dash all hopes of societal acceptance.
Rosedale asks Lily why she hasn’t attempted to get even with Bertha, and reveals that he knows she possesses the love letters that Bertha had written to Selden. He suggests that she use the letters to blackmail Bertha into backing Lily’s aspirations. Such an action would put Bertha and Lily back on equal footing, and would enable Rosedale to marry Lily. Once they are married, Rosedale reasons, his wealth will protect her further from Bertha’s scheming. Lily rejects Rosedale’s plan, and he guesses that Lily is attempting to protect Selden, the recipient of the letters. Rosedale reminds Lily that Selden hasn’t been much of a friend to her since the incident in France.
As Chapter VIII opens, Lily’s fears that Bertha is undermining Lily’s position with the Gormers are realized. Lily makes an infrequent visit to Gerty, who tells Lily that Silverton has once again taken up gambling and living far beyond his means. He also has been cast away from the Dorsets. Lily confides to Gerty that she hasn’t been sleeping well, a condition she attributes to an impoverishment brought on by living with the wealthy. Later, it is revealed that Carry has lined up another position for Lily.
Gerty visits Selden and tells him about Lily’s predicament. She asks Selden to assist Lily and he consents. He pays a visit to Lily’s hotel only to find that she has moved to the posh Emporium Hotel, where she is now working as a secretary for Mrs. Norma Hatch.
