Lady Caroline invites Jack to visit her and her family back in Gallowshield. He finds Sarah about to marry Geordie Watson's agent Stan Liddell, who is involved in anti-Fascist politics as the Blackshirts whip up hysteria against Jews. Jack steps in to help persecuted shop-keeper Manny Goldstein before attending a function given by Lady Caroline's husband, Edward Mostyn, who, although he hates Fascists, needs to invite their leader Smith-Jameson to improve his chances of political candidacy. Jack tells Smith-Jameson just what he thinks of him and walks out, supported by socialist guest Tania Corley. Before returning to London he buys Manny's shop so that, when Fascist thugs attack it, he forces Smith-Jameson to pay Manny full compensation or risk prosecution. He also exposes the Blackshirt as having paid money to a Jew.
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