It is a night in the year 1784 and young Mr Pitt, Prime Minister of England, and lord Thurlow, Lord Chancellor, have come to an inn on the South-West Coast to learn at first hand how the smugglers work and the conditions of the people. Pitt is delighted and Thurlow disturbed to find themselves in the headquarters of the local smugglers, who justify their illicit trade on the ground that it enables the poor man to get his liquor free of the penal taxes. A contraband cargo arrives and Pitt and the Chancellor are compelled into helping stow it away, as task which is barely completed before a Preventive Officer enters and threatens them with arrest. By no means convinced when Pitt reveals his identity the officer sends for the Lord Lieutenant, who fortunately recognizes the visitors. Pitt announces he will repeal the liquor taxes for the sake of the poor, but this does not please the smugglers who see themselves losing their means of livelihood.