I read the book in grade school in the early 80's.
I remember it’s a mystery book where kids visiting a lake look for a treasure. In the end, the treasure turns out to be worthless confederate money. One scene I remember vividly: The boy is tricked by the girl to swim to the bottom of the lake with his snorkel and look up. She claims it’s a beautiful view. When he does so, the protective valve on the snorkel opens and water floods into his mouth.
I also seem to recall a dragon on the lake at night, but it’s made of paper and burns up from the candles used to illuminate it. It is possible, however, that this memory might be from another book…