East Side Kids: Follow the Leader, 1944

Supposedly on furlough, Muggs and Glimpy, two East Side Kids in the army, return to their neighborhood. In reality, Muggs has been honorably discharged with a physical defect, but he keeps this a secret from everyone. Another East Side teen, Danny, is incarcerated after a significant quantity of medical supplies were taken from the warehouse where he works. When Muggs notices Spider, a new gang member, flashing a lot of cash about, he cleverly turns toughie and brags that he has a dishonorable discharge due to stealing.