Next morning Billy went back to his smithy. The devil, who had grown
suspicious, turned himself into a sovereign and appeared on the
floor. Billy seized the sovereign and clapped it into his purse.
Then he took his purse and lay it upon the anvil, and began to beat
it with his sledge-hammer, when the devil began to call out, "Spare
my poor limbs, spare my poor limbs!"

"How much now if I let you go?" asked Billy

"Seven more years, three times the money, and one day in which to
wish for what you like."

Billy took the sovereign out of his purse and threw it away, when he
found his money in the smithy.

Billy carried on worse than ever; gambled and drank and raced,
squandering it all before his seven years was gone. On the last day
of his term he went to his favourite inn as usual and wished for a
tumbler full of sovereigns. A little man with a big head, a big
nose, and big mouth, a little body, and little legs, with clubbed
feet and a forked tail, brought them in and put them in the tumbler.
The drunkards in the room got scared when they saw the little man,
for he looked all glowing with fire as he danced on the table. When
he finished, he said, "Billy, to-morrow morning our compact is up."

"I know it, old boy, I know it, old boy!" said Billy. Then the devil
ran out and disappeared, and the people began to question Billy:

"What is that? I think it is you, Mister Duffy, he is after."