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Falling Action- In the early hours of morning, Holmes explains to Watson how he solved the crime. Holmes then realized immediately that Wilson's job of copying the encyclopedia was simply a reason to get him out of the pawnshop for several hours a day. Holmes figured that Spaulding, who spent so much time in the pawnshop's cellar, was digging a tunnel down there to a nearby building. By thumping his walking stick on the pavement, Holmes determined Wilson's basement stretched behind the house, so he walked around the block to see what building were nearby. When he saw the bank, Holmes knew that it was obvious the tunnel was going there. He also looked at Spaulding's knees to see that they were dirty and worn from hours of digging the tunnel. He knew Spaulding would rob the bank in the evening, on Saturday, because he would then have an extra day before the robbery would be discovered and he could escape. After solving what will happen, Holmes contacted Jones and Mr. Merryweather to help catch the thieves.

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