The film begins with the coronation of Karl Alexander, Duke of Württemberg (Heinrich George), a man much beloved by his Swabians people, who swears an oath to obey the laws of the dukedom "according to the traditional Württemberg loyalty and honesty." However, the Duke soon becomes frustrated because the Württemberg Diet (the provincial council) refuses him the funds needed to maintain a lifestyle comparable to his neighboring sovereigns; in particular, he wants a personal bodyguard, an opera company, and a ballet company. Lacking funds even to purchase coronation gifts for the Duchess (Hilde von Stolz), the Duke sends a courtier to Frankfurt to borrow money from Joseph Süß Oppenheimer (Ferdinand Marian). Süß shows the emissary jewels and jewelry that are obviously beyond the Duke's means and then says that it would be his honor to provide the Duke with jewelry at a substantial discount. However, Süß insists on presenting the items to the Duke personally despite a ban against Jews (''Judensperre'') entering the city that has been in force for over a century. Armed with a pass from the Duke, Süß cuts his hair, shaves his beard, and dons "Christian" clothes so that he can enter Württemberg disguised as a Christian. As his carriage gets into an accident, Süß gets a lift from Dorothea Sturm (Kristina Söderbaum) to the city.
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