Just before Christmas, Joe Miracle, a returning WWII war hero, comes home to learn that gangster Barney Teener has taken over his nightclub and murdered Joe's partner. Joe loots the club's safe for $100,000 and then finds sanctuary in a settlement house ran by Jenny Jones. Mistaking him for a down-and-out musician, she helps him understand the importance of her work. "Early" Byrd, a newspaper columnist, learns Joe's true identity and writes a column that puts Barney on his trail. The gangsters recover the money, after setting fire to the settlement house, but Joe steals it again, and returns to the gutted welfare house disguised as Santa Claus, and gives the money to Jenny to rebuild. There, Tenner and his gang catch up to Joe.