Things don't look as scary to Herbert in the bright light of morning. He feels silly for letting a dirty little paw spook him last night.
He makes some jokes about the paw and then leaves for work.
Mrs. White doesn't believe in the power of the paw either, but she can't help thinking about the possibility of the money magically appearing.
Later in the day a fancily dressed man pays the Whites a visit. He says he comes from Maw and Meggins, the company where Herbert works. (We never learn exactly what kind of work Herbert does.)
The man tells the Whites that Herbert "was caught in the machinery" (2.21). Their son did not survive the accident.
(From this detail, we can guess that Herbert worked in some kind of factory. In the 19th and early 20th centuries, it wasn't uncommon for factory workers to be injured or killed in accidents with machines.)
Mrs. White tells the man that Herbert is the only child they have left. (We guess that means they had other children who died.)
Now for the part you've been waiting for: the man tells the Whites that Maw and Meggins isn't responsible for Herbert's death, but it does want to give the Whites two hundred pounds to settle the matter.
At this news Mrs. White screams and Mr. White faints.