The storm has raged all day through the streets of Berlin, and a financial storm, still more fierce, has been raging in the Exchange, shaking many a proud countinghouse to its foundations by the wild speculation in stocks. The Berlin-Sundin railway has been the storm centre, and Philip Schmidt, the great promoter, has been making full use of the French proverb, _sauve qui peut_. It is the evening of the ball at Philip's new house; guests, many and mighty, throng the burgher palace of the young promoter, whose democratic motto is to bring together poets and kings, artists and speculators. Even the venerable Baroness Kniebreche was all curiosity to see the luxury and the motley throng. The Wallbachs, the Werbens, Golm, Lübbener, Justus and Mieting, Krethe and Plethe, all are there. Toasts are drunk, speeches are made, wine flows freely, and spirits run high. The air is charged with financial and social gossip. Giraldi expects Ottomar's engagement with Carla to be broken. A duel between Ottomar and Wallbach is impending. If Valerie consents on the morrow to Giraldi's plans, there will not be left one stone of the Werben fortune upon another--dallying, temporizing, diplomatizing are the order of the day. Antonio watches Ottomar and disturbs Giraldi's mind. Schieler declares Golm a ruined man, and engages with Lübbener, who is pale with concern, in conversation about Philip. Giraldi has just drawn the last fifty thousand from Haselow, making it impossible for Haselow to help Lübbener. Philip excuses himself to Baroness Kniebreche for a few minutes, to move around among the guests. He comes upon Lübbener and Schieler in a corner, addresses Lübbener as "Dear Hugo," and tells him that this splendor is all due to him. At the close of a laudatory speech in honor of Philip, an officer, whom Lübbener has ordered, comes in to arrest Philip. Philip seizes Lübbener by the wrist, telling him he shall pay for it. Philip and the officer, Müller, leave the company and go upstairs, that Philip may change his clothes. They pass through one room after another until they reach Philip's bedroom. While Philip changes the officer sits and waits; he hears a rustle, but suddenly all is quiet. The time grows long. He goes to the door, only to find Philip gone and himself a prisoner. It is announced that Philip has had a stroke. The police rescue the officer. The ball breaks up. Ottomar quarrels with Wallbach, and is to give notice in the morning. Antonio is in evidence and threatens to stab Ottomar, but Bertalde interposes.