George desperately appeals to Potter for a loan, offering his life insurance policy with $500 in equity as collateral. Based on the policy's $15,000 nominal value, Potter says George is worth more dead than alive, and phones the police to arrest him for misappropriation of funds. George flees, gets drunk at a bar, and prays in vain for help. Suicidal, he goes to a nearby bridge, but before he can jump, Clarence appears and leaps into the river. George dives in and rescues him and they dry off in the tollhouse.