At first, the village people of Iping panicked after the Invisible Man showed himself, or, uh, didn't show himself.
But after a while, people relaxed and went back to the festival. As the narrator notes, "Great and strange ideas transcending experience often have less effect upon men and women than smaller, more tangible considerations" (10.1). Basically: parties trump all.
Soon, though, another stranger comes to Iping. Stranger to the villagers, at least: we can recognize him as Marvel thanks to his shabby high hat. This new guy acts suspiciously around the Coach and Horses.
For instance, Huxter, the shop owner, sees this guy waiting outside a window of the inn, holding a bag. A bag! Well, hey, this town hasn't had a great track record with strangers recently.
So Huxter runs after the guy, yelling "Thief!" But, before he can catch the man, something trips Huxter and knocks him out.