Laust, Peter and Inge grow up and with that comes a desire to travel, helped along by visiting gypsies' stories of the world outside Denmark. The politician Monrad, speaking with newfound eloquence, stirs up the already rather superior feeling members of Parliament and the euphoria spreads through the people of Denmark. Schleswig is to be incorporated into the Danish Kingdom, even though it may lead to war. Laust and Peter are in love with Inge and she loves them both. But now they must part, as Laust and Peter report for duty in the Danish Army.