Convinced that Eugene will lead him to Lizzie, Headstone follows Eugene up the Thames. They pass the lock where Riderhood opens and closes the canal to allow boats to pass. Headstone speaks to Riderhood, who notices how closely Headstone has begun to dress like him. Since Eugene is staying at an inn, Headstone will continue pursuing him the next day. In the meantime, he stays with Riderhood. The following day, he reveals that he has seen Eugene meeting with Lizzie. As he speaks, his nose begins bleeding. At Riderhood’s suggestion, Headstone lies down to rest. Riderhood notices that Headstone is now wearing a “bright-red neckerchief” that matches Riderhood’s own.

The Boffins give money to the Lammles as thanks for the information about John’s intentions toward Bella. However, Boffin refuses to hire Lammle as his new secretary. Georgiana enters, saddened by the news of the Lammles’ recent financial struggles and lamenting her father’s orders to never associate with them. She tries to gift them money and jewelry, but after she leaves, Boffin ensures that these gifts will be returned. Mrs. Lammle thanks him for his discretion, though her husband is annoyed that they cannot keep the gifts. With the money from the Boffins, the Lammles plan to move abroad.