Anti-Jewish riots break out all over Germany, instigated by Ledrantz. Nathan returns to Frankfurt and, under pressure from his own people, agrees to submit to Ledrantz. However, before he can, he receives word that Napoleon has escaped from exile. Nathan's brothers, fearful of their positions, want to support the restored French dictator. However, Nathan refuses to do so. With Ledrantz and others once again desperately in need of financial support, he extracts a treaty from them granting Jews rights, freedoms and dignity long denied them. He also tells Fitzroy that he can once again see Julie. With Napoleon seemingly invincible, Nathan determines to risk all in support of the allies. Just before he is bankrupted, he receives word that Wellington has won the Battle of Waterloo, and he is not only saved, he becomes the richest man in the world and a baron.