The second part continues to explore the dynamics of Coralio, delving deeper into the lives of its inhabitants and their entanglements. Stories such as "The Flag Paramount" and "The Shamrock and the Palm" highlight the clash of cultures and ideals in the town’s political and social spheres. Tales like "Masters of Arts" and "Dicky" portray personal growth, deception, and the consequences of ambition. The closing chapters, including "Two Recalls" and "The Vitagraphoscope," bring resolution to ongoing storylines, reflecting O. Henry's characteristic wit and irony. This section intertwines humor and pathos, offering a vivid portrait of life in a fictional yet strikingly familiar setting.

IX. THE FLAG PARAMOUNT
X. THE SHAMROCK AND THE PALM
XI. THE REMNANTS OF THE CODE
XII. SHOES
XIII. SHIPS
XIV. MASTERS OF ARTS
XV. DICKY
XVI. ROUGE ET NOIR
XVII. TWO RECALLS
XVIII. THE VITAGRAPHOSCOPE