The following day, Elsie overhears a conversation concerning the young Nicolas' plotting with the German embassy to overthrow his father. Promising not to tell, Elsie then meets the Dowager Queen (Sybil Thorndike), the Prince's mother-in-law, who decides Elsie should join them for the coronation in place of her sick lady-in-waiting. The ceremony passes and Elsie refuses to tell the Prince Regent details of the treasonous plot. Nicholas then invites her to the Coronation Ball, where she persuades Nicholas to draw up a contract in which he confesses his and the Germans' intent, but only if the Prince agrees to a general election. The Prince is impressed and realises that he has fallen in love with Elsie. The morning after the Coronation Ball, Elsie irons out the differences between father and son. Her honesty and sincerity have inspired the Prince to finally show sincere love to his son.