That same night, Mr. Smith comes home and announces that he is to be sent to New York City on business and they will all move after Christmas. The family is devastated and upset at the news, especially Rose and Esther whose romances, friendships, and educational plans are threatened. Esther is also aghast because they will miss the World's Fair. Although Mrs. Smith is upset as well, she reconciles with her husband and they sing a tender duet as she plays piano.