With the economic slump continuing Greg announces further wage cuts and reduced hours in line with other mill-owners. To combat opposition troops have arrived and Howlett is appointed leader of a group of special constables. Will, also out of work, pawns his tools, giving money to Esther, with whom he is again close. Daniel is anxious to call the workers out, hoping that they will be part of a national strike. Hannah, severely ill, receives a letter confirming all Peter's accusations about his grandfather's murder. She is not to know that the murderer was mill manager James Windell, who burns the evidence before she can see it and fobs Peter off. An angry Peter gives the signal for the hands to strike and join the other marchers, freeing the occupants of the work-house.
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