Two police officers patrolling the streets of New York City's Bowery discuss the lamentable fact that most of the young boys in the neighborhood will turn to crime and end up in jail.

One exception, they agree, is Danny Breslin, a young boxer who is studying economics and destined for success.

While Tom lays plans to reform Muggs by entering him as a fighter in the upcoming Golden Glove Tournament, Danny unwittingly gets involved with notorious thug Monk Martin.

Muggs eventually wins the respect of the entire neighborhood and earns the police department's sponsorship of his fight in the Golden Glove Tournament.

So completely has Muggs given up his delinquent ways that he curses Monk when the racketeer offers him $1,000 to take a fall in the tournament fight.

Danny's family gathers around a radio and listens with pride as Muggs knocks out his opponent at the tournament.