In this thrilling espionage adventure, Alfred Pettibone, played by Gerald Hamer, a British secret agent, finds himself in grave danger when he is murdered while en route to the United States. The reason for his perilous journey is the vital secret document he carries, which has been covertly converted into microfilm—a tiny but immensely important piece of information that could threaten national security if it falls into the wrong hands. The British government, concerned about the potential espionage, immediately seeks the expertise of the legendary detective Sherlock Holmes, portrayed by Basil Rathbone, to investigate and recover the microfilm before any enemy spy ring can seize it.
Holmes, with his remarkable powers of deduction, quickly surmises that Pettibone had hidden the microfilm inside a small matchbook adorned with a prominent "V for Victory" symbol. This matchbook becomes the critical key to the entire plot, as it is passed unknowingly from person to person during a lively party hosted in Washington, D.C. Among the party guests is Nancy Partridge, a charming debutante and bride-to-be, played by Marjorie Lord. She unwittingly receives the matchbook, which then changes hands multiple times at the gathering without anyone realizing its significance.
Unbeknownst to the characters, the chief spy, Heinrich Hinkel, alias the seemingly respectable Richard Stanley, played by George Zucco, has his eye on the microfilm. Hinkel orchestrates a kidnapping of Nancy Partridge in hopes of retrieving the matchbook, which he believes contains the microfilm. Holmes quickly narrows down the suspect to an antiquarian shop where Hinkel is believed to be hiding. During a tense confrontation in the shop, Holmes cleverly reveals that the person holding the microfilm might not even be aware of its presence inside the matchbook, indicating how hidden the microfilm truly is.
The situation escalates as Holmes is captured by Hinkel, and both Holmes and Nancy face a deadly threat—murder. Just when it seems all hope is lost, timely intervention by the police, summoned by Dr. Watson through an intricate plan, bursts into the shop. A fierce gunfight ensues, leading to Hinkel's defeat and his capture. Despite this, Hinkel manages to escape with the matchbook, leaving Holmes and Nancy in peril.
Holmes, ever the master strategist, then races to the office of Senator Henry Babcock, played by Thurston Hall, having learned from Hinkel that the microfilm might be hidden within a crucial letter in the senator's possession. Holmes's quick thinking leads him there first, and he skillfully delays Hinkel's attempt to seize the microfilm by revealing the truth about the microfilm being inside the matchbook. Hinkel, armed and desperate, captures the senator's letter at gunpoint, but once again, Holmes's plans come to fruition. The police arrive, apprehending Hinkel once and for all.
In a clever final twist, Holmes sets fire to the senator's letter, revealing that the microfilm was hidden inside the matchbook all along, safely tucked away from the spies’ grasp. This story is a classic tale of espionage, deception, and quick wit, showcasing the enduring brilliance of Sherlock Holmes in unraveling even the most intricate conspiracy in the shadowy world of international spy rings.
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