Ricardo bemoans his fate in having married Hannah.  He claims to have chosen her for a “simple, amiable, kind-hearted girl.”  She counters that he only married her because she was a powerful medium, a charge he admits.  She continues that it’s not much fun being married to an impecunious “old dotard”.  Ricardo tries desperately to assert his authority, forbidding her to attend any more public séances.  He threatens to withdraw his financial support, but she reveals that she has her own money, implying that she got it by dubious means.  Ricardo rises as if to strike her, but collapses when Hannah discloses that she knows he killed his first wife.  He writhes in agony as she describes in detail the events surrounding the murder.  He returns to his room, diminished.

Hannah, keeping her promise to Steinberg, prepares dinner for her husband.  She also mixes him a whiskey and water, and, after uttering an Italian proverb, adds some white powder.  Ricardo takes the tray from the maid and locks himself in his room.  Shortly afterwards, horrible noises can be heard and eventually Hannah forces her way in with a crowbar, just as he is in his death throes.  He gazes at her in an accusatory manner, mutters “Leonora”, then dies.  The bereaved Steinberg is convinced that he died by his own hand, and comforts Hannah.  He suggests that she hold séances again  in order to earn money, but she steadfastly refuses.  For his part, he is keen to discover the reasons for his friend’s apparently rash act.  He is pleased, therefore, when an acquaintance invites him to a séance that is to be held by a wonderful medium, a widow by the name of Mrs Brown.  His curiosity as to the identity of the medium is met by the appearance of Hannah, masquerading under a new identity.  The guests start speculating as to whether the mysterious man who keeps appearing is her late husband.  Hannah feels faint and announces that she is unable to sit for them that evening.

She hurries home, followed by Steinberg, who is appalled that she has been holding séances behind his back.  He implores her to stop, insisting that it is degrading to perform for money.  Hannah replies that she must earn a living.  Steinberg throws caution to the wind and asks her to be his wife.  She demurs slightly, claiming it is too soon after Ricardo’s death.  However, when Steinberg reminds her of his fortune she accepts, on the understanding that she can retain her title of Marchesa.

The happy husband takes his new wife to the continent where she thrives, becoming even more sophisticated and urbane.  The couple soon became the toast of society, attracting members of the aristocracy to their soirees.  Polite conversation soon turns to Spiritualism and Hannah covertly agrees to hold a private séance for a Countess who has lost her child.  Although her client is sworn to secrecy, Hannah’s reputation grows and she is in great demand.  She manages to keep it secret from her husband, but he becomes increasingly suspicious of her growing popularity.  He is particularly concerned by the attentions of an Italian man.  Hannah dismisses his concerns, claiming she is merely enjoying the company of a countryman.  She seems to have fully assumed the role of the Marchesa di Sorrento.  When a note arrives from her ci-devant fiancé, Joseph Brushwood, she denies ever having known him.  He has come with news of her mother’s serious illness.  She agrees to see him, but maintains that she had never clapped eyes on him before.  His pleas for help fall on deaf ears, Hannah insisting that he is an impertinent impostor.  Steinberg is utterly perplexed that his wife seems to have forgotten her former life.  He sends some money to her family, along with a note purporting to have come from Hannah.

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