It was Peggy who first saw the light flashing in the tower of the Old House. Mike had had the first watch that night, and Peggy had come up from her room about one minute before midnight to take her turn at watching.

She whispered a few words to Mike, and took her seat by the window.

“There hasn’t been a sign of anything,” Mike said in a low voice, and he threw off his dressing-gown to get into bed. “This is the fourth night we’ve watched - it’s a bit boring, I think. Do you suppose that...”

But just at that moment Peggy gave such a loud squeal that Mike jumped. “Mike! Oooh, look! Mike! There’s a light in the tower. It’s just come, this very moment!”

Mike ran to the window, almost falling over a chair on the way. Jack awoke at the noise.

“Yes!” said Mike. “It’s a light! Jack! Jack! Come and look!”

Jack jumped out of bed and ran to the window. Sure enough, there was a light in the distant tower - a light that dipped and flashed and dipped and flashed.

“They are signalling,” said Jack, in excitement. “The boat must be standing out to sea watching for the signal right beyond that rocky crag we sailed round.”

“Shall we get on our things and slip down to the beach?” said Mike so excited that he could hardly stand still.

“Yes,” said Jack. “Peggy, wake Nora. There’s no hurry, because if that light has only just shone out of the tower, it will take some time for the boat to get round to Spiggy Holes. We’ve plenty of time to dress properly.”

Peggy flew down the winding staircase to tell Nora, who was still sleeping soundly. Peggy shook her, and Nora woke up in a hurry.

“Nora! The light’s in the tower! Hurry and get dressed, because we’re all going to creep down to the beach and hide in a cave to watch,” cried Peggy. Nora almost fell out of bed in her excitement. They put on their clothes in the dark, for Jack had forbidden lights of any sort in their tower, in case they should be seen from the Old House.

“If we can see their light, they could see ours,” said Jack.

“True, Captain!” said Mike and dressed himself at top speed. He put on both his stockings inside out, and buttoned his coat up wrong - but who minded?

They were all ready in five minutes. Jack took his torch and gave one to Peggy for the girls. They all crept down the staircase, out of the little tower door, and down the garden path, where the smell of honeysuckle came to them.

“Nora’s got on her bedroom slippers,” said Peggy, with a giggle. “She couldn’t find her others.”

“Sh!” said Jack sharply. “Other people may be about, remember. We mustn’t be seen or heard.”

They went as quietly as they could down the rocky path to the beach. The tide was half in and half out. The moon swam out from behind a cloud and lighted up the shore for the children. Jack stopped and looked out over the sea.

“No sign of any boat yet.” he whispered. “Let’s get into one of the nearest caves and get settled before anyone arrives. I expect the people from the Old House will come down to the beach soon.”

The children went into a small cave not far from the steep cliff path. They thought that if they hid there they could easily see who came or went up the cliff. They sat on the dry sand on the floor of the cave and waited, speaking in whispers. Nora was shaking with excitement. She said her knees wouldn’t keep still.

Suddenly the children heard voices, and they stiffened in surprise. The voices were to the right of them. Jack cautiously peeped out of the cave when the moon went behind a cloud.

“I believe it’s the man called Felipe Diaz and that sleepy-looking chap called Luiz,” whispered Jack.

“But, Jack, how in the world did they get on to the beach?” whispered back Mike. “We didn’t see them come down the cliff-path - and that’s the only way down on to the beach for a couple of miles! The cliffs are much too steep anywhere else to get down to the shore.”

“That’s funny,” said Jack. “They couldn’t have been here already, surely, or we’d have seen them. Perhaps they were waiting in a cave. Good gracious, I hope they didn’t spot us!”

Nora went hot and cold when she heard Jack say that. Mike shook his head.

“If they’d seen us they’d have rushed us off the beach at once,” he said. “They wouldn’t want us to see what was happening to-night. Listen! What’s that!”

The children listened - and over the black and silver water they heard the sound of a low humming.

“It’s a motor-boat!” said Jack, in an excited whisper. “It’s been waiting out yonder, round the crag, for the signal. Now it’s coming in! Watch out, everyone. See all you can.”

The children stood up and craned their necks round the rocky edges of the cave. The moon came out for a moment, and coming nearer and nearer to the shore a large motor-boat could be seen, glinting in the moonlight. Its hum was loud in the stillness of the night.

It shut off its engine and ran gently into the little cove where George kept his boat. The children could no longer see it.

“It must be by George’s small wooden jetty,” whispered Jack. “Well, we shall see what kind of goods the smugglers are bringing in, when they pass us on their way to the cliff-path.”

They all waited impatiently. The sound of hushed voices came to them, and the thud of the boat against the wooden pier. The children waited and waited. Then there came the sound of humming once again, and the motor-boat slid out of the cove and made its way swiftly out to sea and round the rocky headlands.

“They’ll be coming by in a second,” said Jack. “Now be quiet as mice, everyone - don’t sneeze or cough for goodness’ sake!”

Nora at once felt as if she was going to sneeze. She took out her hanky and buried her face in it. How dreadful if she gave their hiding-place away just at this most important moment!

But the sneeze didn’t come - and nobody came. Not a shadow passed in front of the children’s cave. Not even a voice could be heard now.

After half an hour, the children became impatient.

“Jack, what’s happened, do you suppose?” whispered Nora.

“Can’t imagine,” said Jack. Then a thought struck him. “I say! I wonder if the boat came to fetch anyone! We shouldn’t see them come by if they’d gone in the boat!”

“Well, then, we might as well go out and look round a bit,” said Mike. “Can we, Jack?”

“All right,” said Jack. “But for goodness’ sake be quiet!”

They made their way softly to the little cove where the wooden pier stood. George’s boat was beside it. Jack shone his torch on the ground and pointed out the footsteps in the sand.

“Let’s follow them backwards and see where they come from,” said Mike. “I simply can’t understand how those men came down to the beach to-night without us seeing them pass.”

So, with the help of the torches the children followed two pairs of footsteps from the cove, round the beach - and into a big cave!

“So they must have been hiding here all the time!” said Jack.

“Look,” said Mike, in a puzzled voice, swinging his torch all over the sandy beach. “There are no more footsteps beyond this cave - they didn’t come to the cave by the cliff-path, that’s certain. Then how did they come?”

“Jack! Mike! There must be a secret passage from the Old House to the beach!” suddenly said Nora, in such a loud whisper that the others jumped.

“Sh!” said Jack. Then he too began to whisper loudly. “I believe Nora’s right! Of course! There’s a secret passage from the shore to the Old House! Why didn’t I think of it before! My goodness, Nora, that was smart of you to think of that.”

“The passage must begin in this cave, where the men’s footsteps go,” said Nora, pleased and excited to think that Jack thought she was smart. “Let’s go in and explore.”

“And walk straight into dear Mr. Diaz and his friend Luiz!” said Jack. “No, thank you. Besides, I’d prefer to do it in daytime. It’s a bit too creepy now. Come on, let’s go back to bed and talk.”

They all went back up the steep cliff-path, through the scented garden and into their tower. The girls curled up in one bed in the top room and the boys in the other.

And they talked. How they talked! They were so thrilled with the night’s adventure that it was dawn before they thought of really going to bed.

“You see, what happened was they signalled to the boat to come in with the smuggled goods, whatever they were,” said Jack, for the twentieth time, “and Mr. Diaz and his friend slipped down from the Old House to the shore by the secret passage that leads to that cave - and then they took the goods up that way back to the Old House. So we never saw them.”

“When can we explore the cave for that secret passage, Jack?” said Peggy longingly.

“To-morrow!” said Jack, hugging his knees, as he sat in Mike’s bed.

“To-day you mean!” said Mike, with a laugh, and he pointed to where the eastern sky was beginning to shine with a silvery light. “It’s to-day now. Come on, we really must go to sleep for a bit!”

The girls went down to their room. The boys settled into their beds and were asleep in a few seconds. It seemed as if they had only been in bed for a few minutes when Dimmy awakened them at half-past seven.

“Are you never going to wake to-day?” she said in amazement. “Did you keep awake half the night, you naughty children?”

“Perhaps we did, Dimmy, perhaps we did!” said Jack, with a laugh - and not another word would he say to explain why they were all such sleepyheads that morning!