Hughie is handsome, charming and popular but he has been very unlucky as far as financial matters are concerned. He was left nothing of any great value in his father's will. He has tried his hand at several different businesses, all of which have failed. Having no job, Hughie's only source of income is two hundred pounds a year which is given to him by an elderly aunt. Hughie has fallen in love with a young woman named Laura Merton and she loves him in return. Laura's father, Colonel Merton, is fond of Hughie but, due to his poor financial prospects, he does not want the young man to marry his daughter. He has often told Hughie that he will only allow him to get engaged to Laura after he has earned ten thousand pounds.  Hughie goes to see his artist friend Alan Trevor. He finds that Alan is painting a portrait of an old man who appears to be a beggar. The old man is wearing a tattered brown cloak and boots which have been mended many times. He has a rough walking stick in one hand. In the other hand, he is holding out an old hat as if to ask for money. His face is heavily wrinkled and he looks extremely sad. Both Alan and Hughie agree that the old man is an excellent subject for a painting. Hughie, however, cannot help feeling sorry for the man. He thinks it is unfair that, although Alan's paintings regularly sell for two thousand guineas, he only pays his models one shilling an hour to pose for him and does not give them a percentage of the money which he makes from sales of their portraits.  When Alan leaves the room, Hughie looks in his pockets. He finds that the highest denomination coin which he has is a sovereign. Although it means that he will have to economize more than usual for the rest of the month, Hughie gives the coin to the old man, who appears very happy to receive it. Hughie leaves soon afterwards.