Hsien-wu feels depressed being appointed to handle the trivial in the palace. In opposing the officer' idea of ceding the Liao Tung. Peninsula, Hsiu-wu's comment displeases Tzu His and gets dismissed. To overthrow the corrupt Ching, Kuo unites with other bands and buys weapons. Ma threatens to expose Hsiu-fu’s cowardness and his false news of victory unless Hsiu-fu gives him a large sum of money. Yun Tien agrees to pay. But instead Hsiu-fu shows Ma the evidence of his own corruption. Learning of Hsier-wu's failure, Fu-hai and Kuo persuade e him to join them but are refused. Ma and Hsiu-fu secretly store the army's guns and bombs in Yun-tien's mansion, preparing to make money by selling them to the anti-ching rebels. The bombs being exploded accidentally, Ma charges Yun. Tien for smuggling weapons and puts him in jail.
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