Colet is victimized - her handbag is missing and presumed lost. The next day, the Major is seen framed as he stands outside a window display case of a ladies' shop. The two like-minded, rival suitors for Mme. Colet's hand in marriage are embarrassed to find themselves both inside the same proprietor's shop inquiring about a replacement handbag. Over breakfast in their simple Parisian hotel room after a year's passage of time since their introduction to each other in Venice, Gaston and Lily read behind newspapers, suggesting their estrangement over time and their desperate financial situation.
Prosperity is just around the corner.
Lily discovers a press advertisement - an offer of 20,000 francs reward for the return of Mme. Colet's lost evening bag. Francs Reward for person who delivers handbag lost last night at Opera Comique. Handbag decorated with diamonds and sapphires. Clasp also contains 3 little diamonds.