Anne hurriedly leaves. In his morning room, Tom sits sulking amid Baba's curios as she chatters about the origin of each. When he refuses to respond to her affection, she complains bitterly. Tom silences her and she remains motionless as Tom falls asleep. Seeing it as a means of redemption for his misdeeds, Tom wonders whether he might again deserve Anne.
Shadow points out the device's usefulness in gulling potential investors.
Amid rumors as to what has become of Tom, Anne enters in search of him. Indignant at finding her belongings up for sale, she tries to order everyone out. She draws Anne aside, saying the girl should try to save Tom, who still loves her. Anne, hearing Tom and Shadow singing in the street, runs out. Tom must end his life by any means he chooses before the stroke of twelve.