In a meeting with Al and the executive officer, the captain tells Al that his punishment for an unsubstantiated allegation against an officer is loss of his rating and reassignment to Greenland, but also informs Higgins that he will have to repay every embezzled dollar before his court-martial. He gently chastises Al for not having come to him with the proof earlier, but gives him leave to marry Jo before he ships out for Greenland.
In a gathering with Al and the commanding officer, the captain informs Al that his punishment for an unverified accusation against a superior will be demotion and reassignment to Greenland, while also telling Higgins that he must repay every stolen dollar before facing court-martial. The captain cautions Al about not having presented proof earlier but allows him to marry Jo before shipping out.