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The film is set, with a few exceptions, entirely at Nick's 'Pacific Street Saloon, Restaurant and Entertainment Palace' in San Francisco, where a sign in the window announces "Come in and be yourself," signed "Nick" (William Bendix). Joe (James Cagney) sits at one of the saloon's tables much of the time, observing people coming and going. He is unemployed but apparently well-off, constantly ordering champagne and giving advice or money to others. (It is implied that he has a knack for choosing winning horses at races.) He desires to live "a civilized life" without hurting anyone and believes the real truth in people is found in their dreams of themselves, not the hard facts of their actual existence.[

Tom Richards a drifter encounters the local newspaper owner Ms. Vinnie McLeod and begins to help Vinnie fight the towns evil Mayor Dougherty who owns the rival newspaper.