- Revolutionary War heroine Betsy Ross finds herself in competition with her sister for the affections of a British soldier.
- Betsy Griscom, living in Philadelphia at the beginning of the Revolution, is the daughter of a Quaker. Clarissa, her sister, wearing Betsy's cloak, keeps tryst with Clarence Vernon, an officer in General Howe's Army. On her way to meet Joseph Ashburn, owner of a trading vessel, Betsy meets Clarissa. Taking the wrap from her, Betsy goes on to her trysting place. When Joseph expresses a fear that her father will not consent to her marriage, Betsy is for declaring war on her father. Vernon sees Betsy in Joseph's arms, and he believes Clarissa is playing him false. When Betsy has left, Vernon says Mistress Griscom is his. In the duel, Vernon is struck down by Joseph. The town crier, Ketch, urges Joseph to escape. Throwing his hat and cloak into the river, Joseph departs. Joel Radley, a renegade, finding Vernon wounded, realizes he will be well paid for befriending the rich officer. When Ketch calls for help, Radley kills him. Vernon comes to and Radley shows him Ketch's body, saying Vernon had killed the crier. Radley assures him he will save him if paid well. Radley helps Vernon to his home. Radley compels Vernon to introduce him as a trusted friend, saying he will make a valuable spy for General Howe. Betsy learns Joseph has been drowned. A year later she marries John Ross, who is afterward killed. Then Betsy becomes proprietress of an upholstery shop. Later Joseph, under the name of Nathaniel Wheatley, has become aide to General Washington. Clarissa is driven from her home and Betsy cares for her. Disguised as a Dutch vendor, Vernon comes to Philadelphia. His resignation from Howe's Army has been accepted and he is waiting to join the American Army. Betsy suspects Vernon is a spy, when Clarissa tells her she saw him in disguise. As Lieut. Wheatley, Joseph comes to Betsy's shop. Both are startled. Washington commissions Betsy to fashion the country's first flag. Joseph confesses he is a murderer. She promises not to betray him. Unable to go to Clarissa, Vernon urges his mother to reassure her. When the minister accuses Betsy of harboring a scarlet woman, she swears the child is her own. Mrs. Vernon insinuates Betsy's shop is a harbor for spies. Vernon peers through the shop window, and when Joseph is about to shoot, Betsy says a shot may alarm someone who is ill upstairs. Joseph believes she is harboring either a lover or a spy. Betsy spurns the money offered by Mrs. Vernon, who says her son denies the marriage to Clarissa. Vernon rushes in. He is being pursued by American guards. He pleads with Betsy to hide him. Betsy sits in a chair and covers Vernon with the flag. Betsy smuggles Vernon into a closet. Washington calls to get the finished flag. Joseph asks to be permitted to retain the guard. When he refuses to explain why, he is placed under arrest. Washington gives him a letter to Benedict Arnold, ordering Joseph to report his arrest in person to Arnold. Arnold sends Joseph back to Washington with papers which had been captured on an enemy messenger. Realizing that through his love for her, Joseph is being dishonored, Betsy confesses there is a spy in the house, her sister's husband. Joseph returns. Washington tells him his position has been explained by Betsy, and asks Betsy to turn her prisoner over to Joseph. When Joseph sees Vernon, he realizes he is not a murderer. Vernon is tempted to go to Clarissa, but he steels himself and leaves with Joseph. Betsy assures Clarissa that she has seen Vernon and heard from his lips that she is his wife. The next morning Betsy comes upon the packet which Joseph had brought from Gen. Arnold. She reads Vernon's name and realizes it must be his discharge from Gen. Howe's Army. Knowing his life is in jeopardy, Betsy rushes to Washington, only to find Joseph has taken Vernon to Gen. Arnold. Believing Vernon already convicted by the Court Martial, General Washington writes a release, with which Betsy goes on an adventurous ride to General Arnold's headquarters. Radley is suspected by the Americans and arrested. Thrown into Vernon's cell, he confesses he killed Ketch. Vernon is found guilty. Radley is also sentenced to be shot. Betsy arrives, but is told the spy has been executed. As the body is carried out, Betsy finds it is not Vernon but Radley. As the squad aims to fire at Vernon, Gen. Arnold stops the execution, and Vernon is permitted to return to his wife and child, an honorable American. Joseph looks on, unable to understand the relation between Betsy and Vernon. Betsy explains, and his faith restored, Joseph folds Betsy in his arms.
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