During World War II, George is ineligible for service because of his deaf ear. Harry becomes a Navy pilot and earns the Medal of Honor for shooting down two kamikaze planes headed for a troop transport. On Christmas Eve 1945, as the town prepares a hero's welcome for Harry, Billy goes to the bank to deposit $8,000 of the Building and Loan's cash. Billy taunts Potter with a newspaper headline about Harry, but unintentionally wraps the envelope of cash in Potter's newspaper and hands it to Potter. Potter finds the envelope but says nothing, while Billy cannot recall how he misplaced the cash. With a bank examiner reviewing the company's records, George realizes scandal and criminal charges will follow. Fruitlessly retracing Billy's steps, George berates him and takes out his frustration on his family.