Franz tells Eva that Mieze has left him. Eva reassures him, though she is a bit concerned herself. A robbery pulled off by Pums’s gang goes wrong and Meck burns himself with a welding torch. Franz takes Meck to his apartment to bandage his wound. Meck tells Franz that Reinhold is a bad guy, but Franz claims he has a good heart. Meck takes the police out into the woods and helps them find Mieze’s strangled body, telling them he helped to bury her. Eva brings Franz a newspaper that relates Mieze’s murder. Franz lapses into demented laughter, claiming he is pleased that at least Mieze did not leave him as he had thought.
Franz introduces Mieze to Meck. Reinhold blackmails Meck to set up a meeting for him with Mieze. Meck takes Mieze on a drive to Freienwalde and delivers her to Reinhold. Reinhold takes her for a walk in the woods, where she resists his advances. Mieze wants to know more about Franz, and Reinhold reveals it is because of him that Franz lost his arm. Mieze is horrified at this revelation. Reinhold strangles her and leaves her in the woods.
As Mieze cannot have children, Eva tells her she will have a child with Franz that Mieze can then raise. Mieze is delighted. Eva also tells Mieze she’s concerned that Franz is concerting with Willy and Communists. Mieze gets him to agree to stay out of politics. After Mieze describes the agreement made with Eva for Franz’s baby, Franz is horrified as he thinks Mieze wants to be rid of him. Mieze pleads that she loves him. The two get drunk and are happy until Mieze’s rich client arrives. Franz only finds out then that she is going away with him for three days and weeps in despair.
Eva explain to Franz that Mieze just wants to work to support him as Franz cannot do so due to his missing arm. He reconciles with Mieze. Franz goes to Reinhold’s and tells him how he has become a pimp. Reinhold is disgusted by Franz’s stump of an arm. Franz is inspired by a Communist rally and spouts his newly learned rhetoric to Eva and Herbert, which upsets Eva.
Franz gets involved in an illegal enterprise with Willy, whom he met at a cabaret. Eva and Herbert drop by to see Franz and bring a young woman they offer as a new lover. Franz and the tender-hearted woman, whom he names Mieze, fall for each other. However, their spell of love is broken when Franz finds a love letter from another man.
Franz has survived the car accident, but his right arm has been amputated. He recuperates for a time with Eva and Eva’s lover Herbert. Herbert agitates against Pums’s syndicate, so the boss decides to take up a collection to help with Franz’s medical costs. Franz goes to a red light street and encounters a pimp who offers him a woman he calls the whore of Babylon.
Franz goes on an alcohol binge as a former medical orderly looks over him. He runs into Meck on the street one day. Meck had been living with Lina until she left him.
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.