At Yosemite, the group bids Clarence farewell as he waits for his train to return to San Diego. He promises to speak to Mariano immediately upon his return so that Mariano can explain Clarence’s purchase of the land to Josefa so she will no longer stand between Clarence and Mercedes. He will write to Elvira for propriety so she can share any news with Mercedes. To Mercedes’s dismay, Selden and Gunther appear soon after Clarence’s departure. Elvira urges Mercedes not to fret over Clarence’s departure, optimistic that he will speak to their father and secure the courtship between the young lovers.

After a long day of brooding over being separated from Clarence, Mercedes rejoins the travel group, which includes Selden and Gunther. Mercedes enjoys the trip but evades Selden and Gunther’s attempts at flirtation.

Clarence finds San Francisco “deserted, dusty and desolate” without Mercedes (109). Hubert reports that he has made Clarence $20,000 through stocks. As Clarence returns to San Diego, the narrator reminds readers that San Diego in 1873 still had a bright hope of the bounty of the Texas Pacific, not yet knowing that the railroad would go bankrupt due to corruption.