One day while Polina and Alexei are on a walk they see Baron and Baroness Wurmerhelm. Polina dares him to insult the aristocratic couple and he does so with little hesitation. This sets off a chain of events that details Mademoiselle Blanche's interest in the General and gets Alexei fired as tutor of the General's children. Shortly after this, Grandmother shows up and surprises the whole party of debtors and indebted. She tells them all that she knows all about the General's debt and why the Frenchman and woman are waiting around the suite day after day. She leaves the party of death-profiteers by saying that none of them are getting any of her money. She then asks Alexei to be her guide around the town famous for its healing waters and infamous for its casino where the tables are stacked with piles of gold; she wants to gamble.