Phillipi lived in Paris during the time after the French Revolution. His father was physician and close friend to the King of France. Although the King had been given his crown by the Chamber of Deputies, there were many revolutionaries plotting to take it away. Philippi loved to walk by the river Seine, and one day came upon a band of gypsies operating a carousel. His adventures begin upon discovering a prized white stallion lost from the Kingas stable. The stallion, under an evil spell, is being held prisoner on the carousel by the gypsy leader. Sarah, a young girl who later becomes a ghost of the legendary gypsy Saint Sara-la-Kali, gives Philippi a magic brass ring which helps him free the horse and win a race for the King. After an exciting balloon ride between Paris and Versailles, the magic ring helps Philippi win a second race, overcome the gypsy leader, and prevent the assassination of the King.