Believing Oliver is still asleep, he withdraws a box from a hiding place after locking the door. The box contains fine jewelry and watches.
Fagin notices Oliver watching him and closes the box. He picks up a knife. He demands to know what Oliver has seen. Oliver tells him he just woke up and hadn’t meant to disturb him. Fagin believes him and jokes with Oliver that he was only testing to see how brave he is. He praises Oliver’s courage. He asks Oliver if he saw the trinkets. Oliver admits this. Fagin tells Oliver that the jewelry is his.
Dodger and his friend Charley Bates come back. They have breakfast. Fagin asks if they’ve been working. Dodger replies that he got a few pocketbooks. Bates got some handkerchiefs. Fagin asks Oliver if he would like to learn their trade. Oliver innocently replies he would. Charley laughs at his naïveté, but Dodger is more protective.
Fagin and his two boys play a game. Fagin fills his pockets with various items. He pretends to be walking about, looking in shop windows. Charley and Doger try to steal the items without him noticing.
Two girls pay a visit and go off with Bates and Dodger. Fagin has given them spending money. He tells Oliver to pay attention to those two boys, particularly Dodger. They are the best at their vocation.
Fagin asks Olive to try and pull out the handkerchief in his pocket without him feeling it. Oliver does so without Fagin feeling it, earning Fagin’s praise. Fagin gives him a shilling, then teaches him how to take the marks out of handkerchiefs.