Franz employs himself by hocking tie holders on the street but has trouble making enough money. He is talked into selling the fascist newspaper Völkischer Beobachter and wearing a swastika armband. At Max’s bar, Franz is confronted by an old acquaintance named Dreske. Dreske and his friends sing “The Internationale” to provoke Franz. They nearly come to blows before Franz collapses in a fit.
