Caroline and James are returning from Baltimore, where she has been sorting out her husband's affairs. There is a new crew, hastily gathered by the shifty Bartholomew and a passenger called Draygon, escorting a thousand dollars' worth of gold bullion. On the voyage, Draygon leads the crew in a mutiny in order to gain possession of the bullion but they are thwarted by Onedin and Captain Baines. Elizabeth is in possession of a patent for hydraulic steering aboard steam-ships left her by Albert; Fogarty, now alone, is emigrating to Australia and asks her to accompany him but, on learning that he was only interested in the patent, she refuses. After his return to Liverpool, Leonora refuses James' marriage proposal in favour of his cousin, Richard.
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