Gossip spreads quickly throughout a small New England village when Betty Taradine extravagantly entertains wounded Colonel Preedy, billeted at her home. After a bank official suggests that Betty, deeply in debt, raise money on the life insurance policy of her husband, who left years earlier because of her extravagances, Betty sends herself a telegram announcing her husband's death. Preedy's aide, Captain Peter Rymill, in reality Betty's husband, arrives, and falling in love with her again, agrees to keep his identity secret. Although Betty flirts with Preedy to irritate Peter, Preedy really loves Betty's friend, Penelope Moon. One night, Preedy sneaks into Betty's bedroom to steal Penelope's picture, and hides in the closet when Peter enters seeking reconciliation. Peter then hides under the bed when Reverend Ambrose Liptrott, who loves Betty, and his spinster sister Tabitha, arrive to investigate rumors.