James is importing jute from Scotland and is not happy to learn that Letty's mill-workers are repairing old jute sacks, which, given that she believes in a fair wage, is under-cutting him. They argue and she is injured but, to make atonement, he takes her on his next voyage. Daniel impresses with his generosity by buying Sarah a venue for a seaman's mission but he and Elizabeth are united in their desire to stop William seeing Charlotte. They plan to send him to London but he calls their bluff.