Duddy’s film business is burgeoning, enough so that he earns write-ups in local papers. He does charity events—playing movies for free for local kids—that serve as public press and circulates his name more widely. As his business grows, so do his contacts. He finds, surprisingly, that some of the individuals from his past reappear in his life. He reestablishes a friendship with Hersh, a guy he knew from school. Duddy invites Hersh to relax and drink at his home anytime he likes, and Hersh more than takes him up on the offer. Duddy encourages Hersh to bring friends, to keep the place lively. Duddy enjoys entertaining, though all the cleanup work falls to Yvette. Before long, Duddy’s apartment becomes a round-the-clock hub of social activity and mingling.

As he makes some new contacts and reestablishes old ones, some existing contacts fade away. Duddy’s relationship with Hugh Calder sours at one private meeting when they are discussing the terms of their scrap deal. Duddy wants to renegotiate and pitches an offer than Calder feels is an insult to their friendship. Calder accuses Duddy of being calculating and greedy.