Casilda takes no pleasure in this sudden accession to Queenship. She has nothing to wear, and besides that, the family is penniless. That fact does not disturb the Duke. He has anticipated the problem already. Seeing that his social prestige is enormous, he is having himself floated as a company, the Duke of Plaza-Toro, Limited. He does not regard the proceeding as undignified. This Duke never did follow the fashions. He has made it his business to lead them, and he recalls how "in enterprise of martial kind" when there was any fighting, he "led" his regiment from behind, because "he found it less exciting," Such was this unaffected, undetected, well-connected warrior, the Duke of Plaza-Toro.
[Illustration: HENRY A. LYTTON AS "THE DUKE OF PLAZA-TORO" IN "THE GONDOLIERS."]
Left alone, Luiz and Casilda show themselves to be secretly in love with each other, and they bemoan the miserable discovery that has ruined the sweet dreams of the future. The Duke and Duchess in the meanwhile have gone to pay their respects to the Grand Inquisitor. They return with this lugubrious personage, garbed all in black, and present to him the little lady who, as he says, is so unexpectedly called upon to assume the functions of Royalty. Unfortunately he cannot introduce her to her husband immediately. The King's identity is a little uncertain, though there is no probable, possible shadow of doubt that he is one of two men actually in the town and plying the modest but picturesque calling of the gondolier. It seems that, after the little prince was stolen, he was placed in the charge of a highly-respectable gondolier who had, nevertheless, an incurable weakness for drink, and who could never say which of the two children in his home was his own son and which was the prince. That matter can be solved by their nurse, Luiz's mother, who is being brought from the mountains and whose memory will be stimulated, if need be, by the persuasive methods of the Inquisition.
The gondoliers now return with their brides. Tessa tells in a beautiful number how, when a merry maiden marries, "every sound becomes a song, all is right and nothing's wrong." It was too sanguine a thought! The Grand Inquisitor, a gloomy figure amidst these festivities, finds the fact that Marco and Guiseppe have been married an extremely awkward one, and no less awkward their declaration that they are heart and soul Republicans. He does not tell them that one is married already--married to Casilda in infancy--but he does startle them by the news that one of them is a King. Sturdy Republicans as they are, they are loath to accept the idea of immediate abdication, and it is agreed that they shall leave for their country straightaway and, until the rightful heir is established, jointly hold the reins of government. The Grand Inquisitor for good reasons will not let their wives accompany them, but the separation may not be a long one, and the four speculate on the thrills of being a "right-down regular Royal Queen." With a fond farewell the gondoliers then set sail for their distant dominion.