Miss Bayles (May Robson) has been trying to close down a business operated by Clarence (Alan Hale). Clarence runs a crooked gambling operation in the back room. Miss Bayles uses Clarence's crooked dice to beat him and uses her winnings to open a respectable business for her students to use. Her business gets closed down after a fight in her establishment and the school board replaces her as principal of the town's school. Clarence is feeling pretty good about his victory over Miss Bayles until she tells him she also lost her pension. Clarence sends a fellow classmate and former student of Miss Bayles a telegram. The former student happens to be the President of the United States and he comes to town to honor Miss Bayles.