 Shrewd and successful Julius Karekin romances Elizabeth and very subtly enlists her to ask her father about an incipient contract deal between the British government and the Turkish navy. Meanwhile, Sir Geoffrey apprises Lady Marjorie and Richard of the terms of Lord Southwold s will. Lady Marjorie s brother, Lord Hugo, owes thousands in gambling debt, so the Eaton Place townhouse must be sold for settlement. Lady Marjorie is deeply distressed, but Richard is pragmatic. Together, they consider more modest, but suitable sections of London where they may be happy. To ingratiate himself with the Bellamys, Julius buy Elizabeth a hat shop to manage. When Lady Marjorie learns of Elizabeth s liaison with Julius, she strongly disapproves. Such men are vulgar upstarts of commerce, who seek entrée into the great drawing rooms of fashionable London. The great irony is that Julius is warmly received by her Ladyship and Richard, when he buys the lease of the house for Elizabeth, who happily bestows the deed of gift to her parents.