Chapter 7 summarises the strange events surrounding the wreck of the "Laughing Sally". Captain Barstow survived the wreck, but went mad trying to recover his treasure, some of which was hidden below heavy iron plates he could not move. Agnes survived in a small cave at the far end of the island. It was Captain Barstow, who spent much of his time diving in the wreck, surviving in trapped air pockets, who had rung the ship's bell, even when it was underwater. A great deal of recovered gold is found in Barstow's own cave, and more gold in Barstow's hiding place below the iron plates.