Manuela von Meinhardis, in the care of an unfeeling aunt after her mother dies, is sent to a boarding school at Potsdam in 1910.

The only sympathetic teacher is Miss von Bernburg, who disagrees with the militaristic regime at the school and encourages the girls' self-expression through the arts.

Unfortunately, the cook puts rum in the punch served to the girls at the party after the play, where a drunken Manuela publicly proclaims her love for Miss von Bernburg.

When Manuela learns that Miss von Bernburg is leaving, she threatens to throw herself down the staircase in front of the whole school.

There the headmistress visits her and, in an unprecedented show of humanity, holds her hand while at the same time asking Miss von Bernburg to stay.