Von Wallbach writes to the General that he cannot accept Ottomar's challenge to a duel until Ottomar can clear his record of the reported scandal. Captain von Schönau offers to help the General pay Ottomar's debts, but Colonel von Bohl comes to inform the General that Ottomar's notes are all forged, that Giraldi had been paying Ottomar's notes as they came due, and promised to pay the twenty thousand, but had drawn the half million from the bank, and left during the night for Warnow. The General, instead of signing the order to pay Ottomar's debts, tears it up, sends Ottomar one of his brace of pistols, and loads the other to shoot the devil who lured his son into shame. Ottomar is at the lodging of Bertalde, who goes to fetch Ferdinande. Ottomar plans to go to America, which Bertalde says is all nonsense. She declares Ottomar is not going to leave her room, and that Ferdinande shall stay with him--"these men act like children with their silly honor." Ferdinande writes a note to her father, and gives it to Cilli to deliver. Cilli finds Uncle Ernst in a bad state of mind, but his heart warms as he sees the blind girl, who delivers the letter and pleads for Ferdinande. She starts home by way of the studio, and kneels down before Justus' statue of Mieting. Justus and Mieting are looking for furniture to set up housekeeping, and find a bargain at Isaac Lobstein's. On the way back they chat of all sorts of things, and speak of Cilli, for whom, Mieting says, they must provide, because Justus would have married her if she hadn't been blind and he so ugly! They return to the studio and find Cilli dead before Mieting's bust. The General is at the station to take the train for Sundin on the way to Warnow. The storm has interfered with traffic, and the General is frantic. Uncle Ernst is likewise waiting for a train to Sundin. He has engaged a special, and invites the General to ride with him. Uncle Ernst pours out his soul to the General, and pleads for the children; but the General replies that all are biased by tradition in judging their fellowmen. The special train for Uncle Ernst is announced. A message from Else is handed to the General: "Come by the next train. Fearful storm. Shall perhaps have to go to Reinhold. Aunt will then be left alone with the terrible man. Come for my sake, for Ottomar's sake, for Aunt's sake, who has thrown herself on our protection. Everything is at stake. Else." Madame von Wallbach insists upon going home, as Carla is committed to Golm, and they can no longer be the guests of Ottomar's friends. But Valerie cannot send them, because she wishes to accompany Else to Wissow Hook. The tenant, Damberg, repeats Reinhold's statement that "if the wind comes from the east there will be a bad storm flood." Valerie starts for Wissow. As they hear the surf breaking on the dunes, Else shrinks at the thought of Reinhold being in such peril. Valerie comforts her.