The Market-place again, now gay with flowers and banners and bright sunshine.

The townsfolk are assembled as in the first act. Those from the war are narrating their exploits to eager listeners, and once more the aldermen are waiting expectantly in the doorway of the town-hall, and the pikemen are gathered about the steps. NICHOLAS DIRCKS is directing the serving-men in the arrangement of the throne-chair and some less important seats in front of the steps, while a score of lads and girls are dancing gaily before the inn, with PEPPIN, the dwarf, in their midst.