After Southern belle Elizabeth Lloyd runs off to marry Yankee Jack Sherman, her father, a former Confederate colonel during the Civil War, vows to never speak to her again. Several years pass and Elizabeth returns to her home town with her husband and young daughter. The little girl charms her crusty grandfather and tries to patch things up between him and her mother.
Don Middleton is so caught up with his work he neglects his wife Elsa. Lonely Elsa begins to spend more time with Don's best friend and they become attracted to one another. Don and Elsa decide to get a divorce, unaware of the effect their problems are having on their daughter Molly. When Elsa announces plans to remarry, Molly runs away from home.
An orphaned girl is taken in by a snobbish family at the insistence of their rich, crotchety uncle, even as her devoted aviator godfather fights for custody.
Ollie Dee and Stannie Dum try to borrow money from their employer, the toymaker, to pay off the mortgage on Mother Peep's shoe and keep it and Little Bo Peep from the clutches of the evil Barnaby. When that fails, they trick Barnaby, enraging him.
President Franklin Roosevelt appoints a theatrical producer as the new Secretary of Amusement in order to cheer up an American public still suffering through the Depression. The new secretary soon runs afoul of political lobbyists out to destroy his department.