Salarino and Solanio hear rumors of another sinking ship of Antonio. Shylock Joins them and accuses them of helping Jessica escape. Salarino then asks Shylock whether he can confirm the rumors of Antonio’s lost vessels. Shylock replies that Antonio will soon be bankrupt. Salarino doubts Shylock’s response and thinks that Shylock is just mad at Antonio. Shylock says Antonio has mistreated him solely because Shylock is a Jew, but now Shylock decides to apply the lessons of hatred and revenge on them. Salarino and Solanio head off to meet with Antonio, just as Tubal, a Jewish friend of Shybal, enters. Tubal says that he cannot find Jessica. Shylock wants to get his daughter back. He is especially mad when Tubal says that Jessica has taken a ring—probably given by Jessica’s mother—and has traded that ring for a monkey. Tubal also states that Antonio’s ships have run into trouble and that Antonio’s creditors are certain Antonio is ruined.
In Belmont, Portia begs Bassanio to delay choosing between the caskets for a day or two. If Bassanio chooses incorrectly, Portia says, she will lose his company. Bassanio insists that he has to make his choice now. Portia plays the music while Bassanio makes his choice. Like the suitors who came before him, Bassanio carefully examines the three caskets and their inscriptions. Bassanio picks the lead casket which opens to reveal Portia’s portrait, along with a poem congratulating him. The happy couple promises one another love and devotion, and Portia gives Bassanio a ring. Nerissa and Gratiano congratulate them and confess that they too have fallen in love with one another. They suggest a double wedding. Lorenzo and Jessica arrive in the midst of this discussion, along with Salarino, who gives a letter to Bassanio. In the letter, Antonio writes that all of his ships are lost, and that Shylock plans to collect his pound of flesh. The news let Bassanio feel guilty and Bassanio swears that he will pay the money back for him. Jessica worries that her father is more interested in revenge than in the money. In the letter, Antonio asks only for a brief reunion before he dies. Portia urges her husband to go and meet his friend.
Shylock puts Antonio in prison because of his bankruptcy. Shylock warns the merchants in Venice about Antonio because Antonio insulted him once. Shylock also tells the prison manager to ignore all the mercy grants from the Duke to Antonio. Antonio thinks that Shylock hates him for bailing out many of Shylock’s debtors. Solanio attempts to convince Antonio that the Duke would never allow such ridiculous things to happen, but Antonio is not convinced. In Antonio’s view, Venice is a wealthy trading city with a great reputation for upholding the law, and if the Duke breaks that law, Venice’s economy may be affected greatly. As Solanio leaves, Antonio prays desperately that Bassanio will arrive to pay his debt.
Portia believes that saving her husband’s friend is no different than saving her own husband. She has sworn to live in prayer until Bassanio returns to her, and announces that she and Nerissa will live in a nearby monastery. Lorenzo and Jessica will be in charge of Portia's estate. Portia then sends her servant, Balthasar, to Padua to meet her cousin: Doctor Bellario. From there, Balthasar will take the ferry to Venice, where Portia will wait for him. After Balthasar leaves, Portia tells Nerissa that they need to dress as young men who are going to visit their unknown new husbands. When Nerissa asks why, Portia doesn’t answer but promises to tell the purpose during the ride to Venice.
When Jessica claims that marrying Lorenzo will save her, Launcelot complains that the difference in the culture will destroy the marriage. When Lorenzo asks Jessica’s opinion about Portia, she says that the woman is nearly perfect in all respects and can hardly find someone to match with. Lorenzo jokes that he can be a good husband for her and leads them off to dinner.
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