A steamship sails down the river Pasig. Aboard are several churchmen, Fathers Sibyla, Camorra, Salví, and Irene. There is also Don Custodio, Doña Victorina, a journalist named Ben Zayb, and Simoun, a jeweler of mestizo heritage who dresses like an Englishman. These passengers are of the upper class and sit above deck in the shade. The rest of the passengers are Filipino and Chinese, and must travel below deck. The steamship’s crew is also composed of Filipinos. Those above deck discuss building projects. Simoun proposes a canal, which would require “slave-like” labor; he uses Rome and Egypt as examples. Don Custodio finds the plan foolish for not considering the revolts that would erupt from workers. Simoun doesn’t believe the people would revolt.

Below deck are Filipino and Chinese passengers, many of whom are students. Two of the students are Basilio and Isagani. The two speak with the steamship’s captain. The captain is critical of the younger generation, and doesn’t believe they’ll be able to establish a Castilian Academy because Father Sibyla is against it. Isagani is in love with Paulita, Doña Victorina’s niece. Victorina can’t stand Isagani, but hired him to find her husband.