Manners visits the recently-married Jack and Dolly. Dolly is heavily pregnant, but Jack looks leaner than Manners remembers. Manners offers Jack whisky and smoked salmon sandwiches, and a job: £20 for a week's work. He wants to buy a house from Lord Calderbeck, and wants Jack to act as a front-man.

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With his wife Mary dying of TB, Tom Seaton starts a job as a strikebreaker in the local mine. Jack Ford continues his affair with Dolly Headley whom he visits while she is at work for Sir Horatio Manners, his army captain's father. Discovering that Manners likes swords, Jack goes off and buys a cheap one in order to present it to Manners by way of introduction. Manners sizes him up and offers him a job.

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1919: Jack Ford returns from the Great War to the mining town of Gallowshields, on "leave pending discharge". He has no prospects, but a gift for making himself likable to all levels the highly stratified British classes and an eye for every opportunity--for Jack.

After eight weeks, the miners' strike is over, but the pitmen have settled without gaining anything. ("It was either that or starve", admits Bill). Empire Day ("the day that we remember our Empire. The British Empire. The greatest the World has ever seen") is celebrated at Jessie's school: the headmaster, Mr Ashton, leads the children in a spirited, patriotic rendition of Land of Hope and Glory.

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Matt and Dolly nervously wait for Jack at the registrar's office. Jack arrives at the last minute, bearing a bouquet. Later Jack tells Matt and Dolly that he was delayed by a broken-down tram, and that had to hitch a ride with a passing rag and bone man. Jack gives Dolly the five pounds - the first five pound note Dolly has seen, telling her it's a wedding present (although he declines to tell her from whom). Matt and "Mr and Mrs Ford" share a bottle of champagne.

Mary has died. Jack is joined at the pub by an old army friend, black and tan soldier Sid Hepburn. Jack is surprised to hear that he's being paid ten bob a day, all found. Tom and Bill arrive, and Jack hears about Mary's death. Bill calls Jack a "fornicating bastard". Jack leaves. Sid is joined by a loutish colleague, Harry Bartram.

Billy is unable to get medical work due to his socialist principles and moves back to help his parents. Tom, who finds it hard to cope with shop work, moves into a hostel. Here he befriends Kaganovich, a Russian Jew from Archangel, hoping to travel to Palestine and looking for Jack, whom he says can help him. When the two meet Kaganovich accuses Jack of stealing money from his late father during the Russian revolution though Jack claims he was given the money as a bribe in exchange for helping the old man escape. In any case it is 'Kerensky money', old currency which is out of date and worthless, though Kaganovich is still determined to go to Palestine. Jack does however persuade Tom to go home to his mother.

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