Marguerite, a beautiful woman of affairs, falls for the young and promising Armand, but sacrifices her love for him for the sake of his future and reputation.

John and Laura Baxter are living in Venice when they meet a pair of elderly sisters, one of whom claims to be psychic. She insists that she sees the spirit of the Baxters' daughter, who recently drowned. Laura is intrigued, but John resists the idea. He, however, seems to have his own psychic flashes, seeing their daughter walk the streets in her red cloak, as well as Laura and the sisters on a funeral gondola.