Four graduates of an industrial design school team up and form a small business. The protagonist is so excited by the venture that she turns down the proposal of her dashing instructor. Time passes and her three partners lose interest in the business for different reasons. This leaves the heroine who has a change of heart and decides to forgo the business and marry the instructor after all.

William MacPhab loses seven-pounds in the stock market and decides to slap the man who was responsible for the stock manipulation that caused him to lose his money. Astor Terbanks, the stock-market manipulator is surprised the next day when he gets soundly slapped by MacPhab, and the latter promises to deliver one more a day for the next six days. Terbank's daughter, Daisy, is amused by the procedure and is attracted to MacPhab.

This film is a fascinating showcase for Emil Janning's theatrical play. He's a gentle school teacher who believes in his boys and is easily fooled about all things, while the other town officials want him dismissed. Curiously it's very hard to see what the film is exactly aiming for. Disaster strikes and the lax prof proves to be too far removed of the real problems of the world, on the other hand his enemies are shown in the most unsympathetic, satirical way denouncing the militaristic, bourgeois ideology of the Kaiserreich.

German colonial soldiers fight against the British during World War I.