Question -
Answer -
The ironmaster initially mistook the Peddler for a captain. Even after knowing the truth about him, he was treated like a captain. He wanted to repay Edla for her kindness just as a real captain would have done. Moreover, he didn’t want to embarrass Edla and so he returned the stolen money. His signing himself as Captain von Stahle was an indication that he wanted to retain the dignity and respect accorded to him.