The morning after Carry's words of caution, Lily has made up her mind that she will marry Rosedale. She takes a walk with him, and without hesitation, accepts his previous marriage proposal. He surprises her by telling her that although he loves her more than ever, he has no intention of marrying her now that her place in society has changed. He speaks frankly with her, accusing her of only wanting to marry him because she now doesn't believe she can do any better. He compares his thirst for society to a wealthy man with a taste for horse racing or art. She is refreshed by his honesty, and tries to bid him goodbye on friendly terms.
Rosedale then surprises her once again. He acknowledges that he knows about the letters of.....
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