George Bailey’s younger brother Harry falls through the ice. George saves his life but catches a bad cold which infects his left ear — leaving him deaf in that ear.
George learns that his boss’s son Robert died of influenza. George tells Gower — still shaken at Robert’s passing — he put poison in a patient’s capsules by accident. Gower thanks George, who promises never to tell.
Years later, Gower’s bought George an engraved new case for world travelling. The gorgeous Violet Bick says hello and George, Bert and Ernie all watch her walk away.
George’s Dad Peter wishes George a good trip. Peter asks if George would work at Building and Loan after he’s finished college. Peter helps people purchase things that make them feel comfortable in their own home.
Sam Wainwright arrives — doing his hee-haw sound — telling Harry Coach has heard all about him, having followed every game. George locks eyes with Mary across the room. George secures Mary for the next dance.
A jealous admirer of Mary’s is told there’s a swimming pool underneath the dancefloor. The floor opens up and George and Mary fall into the pool. Then, everybody jumps in.
Heading home, George steps on Mary’s caboose, then gallantly hands it to her. George offers to lasso the moon for her. Mary runs off, but her caboose and robe are trapped under George’s foot. Naked, she hides in a hydrangea bush. George returns her robe and learns his father’s had a stroke.
Wearing a black armband, George signs some papers at the Building and Loan Association ahead of his European trip. Potter wants to dissolve the association.
Potter says Peter was too kind, leading to a discontented, lazy rabble instead of a thrifty working class. Soon, Potter is voted down — on condition George become Executive Secretary. George pays for Harry instead to go to college.
George suggests to Violet they take their shoes off and walk in the fields. He wants to climb Mount Bedford and smell the pines. He wants to stay there the whole night and watch the sun rise. Violet and assembled bystanders laugh.
George sees an embroidery of him lassoing the moon for Mary, but is unimpressed. He says her house smells like pine needles. Sam’s on the phone saying he’s making plastic from soya beans. Sam’s new deal is the biggest thing since radio. Soon, George and Mary are married. George has a wad of cash and plans to honeymoon in New York and Bermuda.
Then, people are seen running to Bailey Building and Loan. Uncle Billy tells George the bank called their loan. Billy gave them all the cash and closed the doors.
Some of the crowd want their money immediately. George tells one man he’ll get his cash after 60 days, as is the agreement. Another man says Potter will pay 50 cents on the dollar for every share they have. George shuts them in and tries persuading them.
He says if Potter gains ownership of Building and Loan, there’ll never be another decent house built in the town. Potter already owns the bank, bus line and department stores.
George says he has $2,000 and makes small handouts of $20 per person to tide them over. George makes it safely to 6pm. He’s still in business with $2 left. George calls his staff financial wizards.
Next day, at Martini’s new home, Mary gives Mrs Martini bread — may they never know hunger. Salt — that life may always have flavour. And, wine — that joy and prosperity may reign forever.
Potter tries tempting George with $20,000 per year. They shake hands, but George is displeased. George tells Potter and his employees they’re scurvy, little spiders.
On Christmas Eve, George tells his friends his brother’s now Commander Harry Bailey and is awarded the Congressional Medal of Honour.
Uncle Billy accidentally loses $8,000. George and Billy search everywhere. George says it means bankruptcy, scandal and prison.
George returns home. He desperately embraces daughter Janie. Mary sees George embracing and kissing their youngest son, Tommy who innocently drapes tinsel over his father’s head.
George grows impatient with Janie, doing Christmas piano practice. George doesn’t like the house or the town. He wishes they had no kids but heads upstairs to check on ill daughter, Zuzu. She won a flower at school. George keeps some of the petals.
Zuzu’s teacher is on the phone. George blames her for Zuzu being ill. Mr Welch, her husband, then takes her place. George is furious with him, too.
George then raises hell, destroying his architecture models and yelling that Janie should keep practising before storming off. His family all pray for him.
George begs Potter for $8,000. All George has as collateral is a $15,000 life insurance policy with a $500 equity in it. Potter wants to have George arrested for misappropriation of funds, manipulation and malfeasance.
George drinks alone. He prays aloud. Mr Welch busts George’s lip and is barred for life. George drunkenly drives into a tree — one of the oldest in Bedford Falls.
George goes to a bridge where another man jumps. George dives in after him. The man jumped to save George. He’s from heaven. He’s answering George’s prayer. His name’s Clarence Odbody — Angel Second Class.
When George says he wishes he’d never been born, God makes it so. George suddenly can hear in both ears and his lip stops bleeding.
George orders a double bourbon. When the cash register rings, Clarence says that means an angel just got their wings. Gower doesn’t recognise George. Nick, the bartender, says Gower spent twenty years in jail for poisoning. George didn’t stop Gower putting poison in that capsule years before.
George Bailey doesn’t have ID or Zuzu’s petals. George reacts against Clarence and marches off. George sees a neon Pottersville sign. The high street now contains neon-lit bars with dancing girls. Violet’s getting arrested.
George learns that Ernie, instead of living at Bailey Park, lives in a shack on Potter’s Field. Ernie’s wife ran off three years ago with their child.
320 Sycamore hasn’t been lived in for twenty years. George calls out to his family, but no-one’s there. Clarence repeats that George doesn’t exist. Bert then has both men at gunpoint. Clarence bites Bert’s hand and vanishes.
Ma Bailey doesn’t recognise George and Uncle Billy’s been in an insane asylum for years. George goes to Bailey Park, only to find a graveyard.
George finds Harry’s grave. He fell through the ice and drowned at the age of nine — unsaved. George manhandles Clarence for information about Mary. She works at the Pottersville library.
Mary doesn’t recognise him and starts screaming. The townsfolk familiar to George restrain him. Nobody knows George. He yells for Clarence, hits Bert in the face and runs off.
George runs to the bridge and starts loudly praying to Clarence. He really wants to live again and breaks down sobbing. Then, Bert pulls up in a squad car asking George if he’s OK. Bert’s been looking all over for George since he crashed into a tree. When George is told his mouth’s bleeding, he starts laughing. He finds Zuzu’s petals in his pocket and embraces Bert, shrieking Merry Christmas. He runs off yelling for Mary.
George is jubilant when he finds his car still crashed into the tree. The Bedford Falls sign is up again. He runs in the snowy street loudly welcoming Bedford Falls. He wishes people Merry Christmas and they all recognise him. He yells Merry Christmas to the stores he passes, even wishing Potter a Merry Christmas. Potter hopes George goes to jail.
George gets home and wishes Merry Christmas to the bank examiner. One of the men has a warrant for George’s arrest. George says he’s going to jail and that it’s wonderful.
George’s children wish him Merry Christmas. He embraces his children. Zuzu’s feeling better. Mary returns home and George happily makes his way downstairs with children hanging from him.
It’s a miracle. The townsfolk arrive and empty a big basket of cash onto the table. Mary told people George was in trouble and they wanted to help. Yet more people arrive with money.
Martini says he emptied the jukebox. Gower also contributed. Violet changed her mind about New York. Even maid, Annie, donates. There’s a telegram from Sam Wainwright in London. He’s providing George with $25,000. Everyone cheers.
Everyone starts singing carols. Harry Bailey then arrives. He raises a toast to his brother: the richest man in town. Everyone sings Auld Lang Syne.
George finds The Adventures of Tom Sawyer by Mark Twain. There’s an inscription which says Dear George, Remember — no man is a failure who has friends. Thanks for the wings! Love Clarence.
Zuzu, in George’s arms, notices a bell ringing on the tree and says an angel just got their wings. George Bailey is thoroughly overjoyed.
Starring James Stewart. Donna Reed. Lionel Barrymore. Rated U. Dir Frank Capra. Released in the UK 1946. Runtime 2hrs 10mins
