She had called her niece in for a little chat.

She had always trusted her, and now more than ever, since her engagement to Rodney, which seemed to Lady Otway extremely suitable, and just what one would wish for one's own daughter.

Katharine unwittingly increased her reputation for wisdom by asking to be given knitting-needles too.
"It's so very pleasant," said Lady Otway, "to knit while one's talking.
And now, my dear Katharine, tell me about your plans." The emotions of the night before, which she had suppressed in such a way as to keep her awake till dawn, had left Katharine a little jaded, and thus more matter-of-fact than usual.

She was quite ready to discuss her plans--houses and rents, servants and economy--without feeling that they concerned her very much.

As she spoke, knitting methodically meanwhile, Lady Otway noted, with approval, the upright, responsible bearing of her niece, to whom the prospect of marriage had brought some gravity most becoming in a bride, and yet, in these days, most rare.