Mr. Latham acquiesced by a nod of his head; Mr. Schultze sat
regarding him through half-closed eyelids.

"Und if dey are _nod_ on der Custom House records," he continued
slowly, "und dey are _nod_ smuggled in, den, Laadham, _den--Mein
Gott_, man, don'd you see?"

"See what?"

"Den dey are produced in dis country!"

For a minute or two Mr. Latham sat perfectly still, gazing into the
other's eyes. First he was startled, then this gave way to
incredulity, and at last he shook his head.

"No," he said flatly. "No."

"Laadham, ve Amerigans produce anyding," the German went on
patiently. "In eighdeen hundred und forty-eight ve didn't know
California vas full of gold; und so late as eighdeen hundred und
ninedy-four ve didn't know der Klondike vas full of gold. Der
greadest diamond fields ve know now are in Africa, bud in eighdeen
hundred und sixty-six ve didn't know _id_! Dere iss no reason ve
should _nod_ produce diamonds."

"But look here, Schultze," Mr. Latham expostulated, "it's--it's
unheard of."

"So vas der Mizzizzippi River until id was discovered," the German