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Part Two continues with Jack and Fred having established their general store in Ballarat, with the ex-convict Smith bringing supplies from Melbourne. They are not really settling down to a peaceful life as they still manage to get themselves involved with buried treasure and bushrangers. Fred finds himself in trouble when he protests at the cruel and harsh manner in which a miner's protest against the heavy taxes they have to pay is put down, but Jack and the local police inspector manage to sort out the situation and bring matters to a satisfactory conclusion. The whole story is told with wit and humour.