As a parting shot, fired reporter Ann Mitchell prints a fake letter from unemployed “John Doe,” who threatens suicide in protest of social ills. The paper is forced to rehire Ann and hires John Willoughby to impersonate “Doe.” Ann and her bosses cynically milk the story for all it’s worth, until the made-up “John Doe” philosophy starts a whole political movement.

George Bailey has spent his entire life giving of himself to the people of Bedford Falls. He has always longed to travel but never had the opportunity in order to prevent rich skinflint Mr. Potter from taking over the entire town. All that prevents him from doing so is George’s modest building and loan company, which was founded by his generous father. But on Christmas Eve, George’s Uncle Billy loses the business’s $8,000 while intending to deposit it in the bank. Potter finds the misplaced money, hides it from Billy, and George’s troubles begin.

Naive and idealistic Jefferson Smith, leader of the Boy Rangers, is appointed on a lark by the spineless governor of his state. He is reunited with the state’s senior senator–presidential hopeful and childhood hero, Senator Joseph Paine. In Washington, however, Smith discovers many of the shortcomings of the political process as his earnest goal of a national boys’ camp leads to a conflict with the state political boss, Jim Taylor. Taylor first tries to corrupt Smith and then later attempts to destroy Smith through a scandal.