[3][4][5] At the Edinburgh Castle Gin Palace, a drinking establishment in the East End of London, a local girl, who is on very familiar terms with the male clientele, sings of her exploits ("Twice in Love").

The intellectual and driven Barnardo finds himself out of place with the Cockneys of the Edinburgh Castle, and a row among them ensues ("A Very Busy Man").

Outside the tavern, Johnny Farthingay, the son of the landlady, assures his girlfriend Jenny that although he can't buy her expensive presents, their love will keep them together.

While wandering London's streets, he encounters two homeless children who take him to the rooftops where they live, and it is there Barnardo learns of their struggle to survive ("The Likes of Us").

Unfortunately, his efforts to help only serve to stir a sense of outrage in the local populace who feel he is meddling in their affairs ("We'll Get Him").

Lord Shaftesbury is hosting a party in his home, at which Barnardo's fellow pub evictee Syrie also is a guest.

When the Edinburgh Castle is placed up for auction, he decides to buy it, as his ownership will serve to silence his detractors, and the building can be converted to further his cause ("Going, Going, Gone!").