"That wouldn't be honest," he stated coldly.
"Why not?" argued Jim, heating up under censure, "He's sneaking a bunch of Chinks into the country, ain't he? Don't he deserve to be caught?"
Denny was like a rock. "Where's the harm in it?" he demanded. "What this country needs is more Chinese."
"Well do I remember my old man saying, many's the time when he was out of work, 'Twinty two families in the house an' devil a Christian in the lot but wan Jew an' two Chinese.' We'd of starved, I'm tellin' you, if it weren't for a fat yellow grinnin' Chinese that owned a grocery around on Pell Street."
With more energy he added, "An' don't be callin' 'em Chinks. A Jap is a Jap but a Chink is a Chinese, an willin' to be white if ye give him half a chance."
There proves to be an easy solution to this impasse. Once Jim suggests that Ferrer, the Cuban, could be smuggling in a Japanese, Denny jumps to the conclusion that this theoretical person is a spy "comin' in under cover because we're tightening up on some of our bowin' and apologizin' to Jap visitors." The government will really pay out for reporting a spy, he concludes, while Jim argues for quantity over quality, assuming that the feds will pay more for a boatload of Chinese illegals. "Where's your patriotism, man?" Denny protests at this thought. "Up North," Jim answers.
Watkins cleverly avoids making clear whether or not the man our heroes eventually discover is Chinese or Japanese. Sure, the man cries out, "No Jap! Chinese!" before jumping ship, and sure, Denny boasts of his ability to tell Chinese and Japanese apart, but just because "the face was the face of a Chinese if Denny Coyle were any judge," that doesn't mean Denny's any judge. In any event, "the Oriental" turns out to be smuggling diamonds, leading Denny to observe, on his assumption that the "yellow man" was Chinese, that "the Chinese are a clever race -- sometimes too clever, belike!" Diamonds actually draw a pretty good reward that Jim and Denny share equally with Old Craikie, who has also talked of "going North" soon. The end of the story explains the title: Craikie dies moments after putting his share of the bills in his sock. To Denny that means "the old one's further North than you or me will ever get if we go to the pole." Modest as it is, "Two Ways North" may be the best thing I've read from Watkins to date.