While Mads Skjern continues to expand his businesses, Hans Christian Varnæs battles a new dynamic force in the board of his bank, the state lawyer Viggo Skjold Hansen, who has obtained his shares and board seat from the spiraling Jørgen Varnæs.

The internationally renowned painter Professor Ernst Nyborg lands in Korsbæk. He is a former art teacher and romantic interest of Maude Varnæs. Also arriving to witness Nyborg's exhibit is Gitte Graae, Jørgen Varnæs' home-wrecking and increasingly expensive lady friend.

The Varnæsses' maid, Agnes Jensen, quits her job to get married to railway employee and local communist, Lauritz "Red" Jensen, but to her dismay, Red quickly invites a German refugee, the poet Herbert Schmidt, to live with them in the spirit of solidarity.

Agnes delivers a boy, while Vicki, widow of Arnesen, returns to Korsbæk as a traveling vaudeville actress and reconciles with her father, the Colonel. Via Oluf Larsen she meets Herbert Schmidt, who now lives with the Larsens. Hans Christian Varnæs learns that his mistress Ms. Jacobsen is pregnant from their affair. She wants an abortion, which he pays for in betrayal of his own morals.