Francie and Neeley forget to wake Katie up when it turns midnight on New Year’s Eve 1917. Francie tells Neeley that she thinks war will break out this year and that they will get electricity in their flat. Neeley starts reminiscing about the past and talking about his dream of joining the Navy. Katie appears at this comment, annoyed at his desire to join the Navy and annoyed that they forgot to wake her up. They all watch New Year’s celebrations from their window and sing and shout out to the neighbors below. The Irish and the Germans start fighting via song, and then Francie announces she doesn’t “like Germans.” Katie then pours them all a drink of brandy they received as a gift from McGarrity. She wants to see how her children react to alcohol, as she is worried that they may be prone to take after Johnny. Neeley dumps most of his drink, but Francie drinks it all. She does make a comment that it isn’t nearly as good as some other sugary drinks.

Francie then asks Neeley if he wants to go up on the roof. Neeley and Francie sit on the roof, and Francie tells him she wants to “hold it all” (404).