While Mads Skjern continues to expand his businesses, Hans Christian Varnæs battles a new dynamic force in the board of his bank, the state lawyer Viggo Skjold Hansen, who has obtained his shares and board seat from the spiraling Jørgen Varnæs.

The Varnæsses' maid, Agnes Jensen, quits her job to get married to railway employee and local communist, Lauritz "Red" Jensen, but to her dismay, Red quickly invites a German refugee, the poet Herbert Schmidt, to live with them in the spirit of solidarity.

Mads' building project is well under way, but Mrs. Møhge supported by Skjold Hansen continues to fight him. Skjold Hansen's daughter Iben arrives in town, having cancelled an upcoming wedding in Germany, and begins flirting with Kristen Skjern. Elisabeth Friis causes a furor, when openly supporting an abortion doctor, bringing her at odds with her and her sister's social circle.

Herbert Schmidt and Lauritz "Red" Jensen embark for Spain to fight the fascists in the Spanish Civil War, but Red changes his mind en route, while Herbert continues on. Elisabeth relays an offer from Hans Christian Varnæs to Kristen Skjern of a position at a bank in Jutland, but Kristen see it as a plot to separate him from his brother, Mads, who is still being hammered by Skjold Hansen's investigations.