- The scene starts outside Grandpa's house; Grandpa goes out to the street, and all the neighbors mill around.
- Capra likes people milling around.
- The neighbors are all worried because someone is buying up their property. But Grandpa says he won't sell, so no one can build a factory there.
- Blakely is lurking over in the corner with some thuggish-looking thugs, who are determined to make Grandpa vacate the house through nefarious means.
- And we cut to the Sycamore basement shop, where the guys are trying to figure out a theme for their next fireworks display. Poppins suggests the Russian Revolution.
- He suggests that Ed use his printing press to print up "Watch for the Revolution. It's coming soon!" and then put those signs in candy boxes to advertise the fireworks display.
- Meanwhile, upstairs, the family tells Grandpa he had several letters from the U.S. Government, but they lost them all.
- This is foreshadowing, in case you missed it.
- Alice comes home and announces that she has a gentleman caller (that would be Tony).
- Alice goes upstairs and talks to her Grandpa about being in love.
- This isn't what most young ladies do right off in a romantic comedy, but this is a romantic comedy that really loves its Grandpas.
- Grandpa talks about how he was in love with his wife, who died before Alice was born.
- Lots of Capra cuteness. That's the Capra way.
- Grandpa explains that he won't leave the house because it's where his wife lived (important plot point, because otherwise he just seems like kind of a stubborn jerk.)
- Alice gives him a new harmonica.