A movie company is doing the Arabian Nights when a hobo enters their camp, falls asleep and dreams he's back in Baghdad as advisor to the Sultan. In a spoof of Rosevelt's New Deal, he organizes work programs, taxes the rich and abolishes the army.

Despite his talent as a musician, a city boy decides to become a boxer. He's successful as a fighter — much to the dismay of his father. When gangsters try to buy a piece of him, he begins to have second thoughts.