Lady Caroline invites Jack to visit her in Northumberland. Sarah is seeing Stan Lidell. Jack helps shopkeeper Manny Goldstein who is being persecuted by Blackshirt thugs. At a function given by Caroline's husband, Edward Mostyn, Jack argues with the local Fascist leader, Hector Smith-Jameson, which attracts him to socialist guest, Tania Corley. Jack buys a share in Manny's shop and when the thugs attack it again, he forces Smith-Jameson to pay compensation or face prosecution, and then exposes him for having paid money to a Jew.