This chapter illustrates the process of disillusionment, meaning the full philosophical realization that the human condition can never be improved, and that all ideals of doing so are futile, dangerous, and even "insane." First we are given Charles' Gould far-reaching despair over the failure of Ribierism, then the biography of Dr Monygham, with the origin of his own peculiar illusion of disillusionment. The chapter culminates with Monygham bringing Hirsch's news of the lighter's sinking to Charles and Mrs Gould, and we watch the three of them react to the death of what was supposedly their last hope. Visually, the theme of disillusionment is symbolized by sunlight, with the chapter proceeding from daybreak through the sudden emergence of full sunshine.

The chapter carries a thematic weight that is slightly out of proportion to its place in the plot. The despair over the supposed sinking of the silver (itself a mistake) is really a brief setback in the triumphant march of the material interests and the Occidental Republic, both of which we already know will succeed. Even within this chapter, we suddenly receive new information about Holroyd that makes the Separatist bid less dependent on the silver than we were told. Nevertheless, the disillusionment is permanent for the Goulds, and for the novel too, which carries its emotional resonance through to the end, somewhat in contrast to the political victory.