It is the World War I period, and Peggy Martin, a showgirl and mistress to London Fiske, marries her love, handsome Monte Van Tyle. They move into the house on 56th street and have a baby, Eleanor. Monte enlists in the army and is killed in action. Peggy is revisited by Fiske who wants her back or he'll commit suicide. She refuses his advances and the gun he brought accidentally goes off killing him. Peggy is convicted with murdered and jailed. Eleanor is told her mother is dead. Twenty years later, Peggy is released and meets gambler, Bill Blaine. The house on 56th street is now a gambling house owned by politician, Bonelli. Bill and Peggy get jobs there. Eleanor comes to visit them, and goes with Bill into his office. Bill threatens Eleanor, now a huge gambler, that he'll tell her husband about her huge debts. Eleanor kills Bill and Peggy takes the blame. Bonelli believes Peggy is innocent and offers to help her if she only stays at the house on 56th street.