As described in a review in a film magazine,[4] Luigi (Linow), a strong man, head of a small show, saves the life of a young woman, Carmelita (Swanson), and persuades her to join his company. His assistant, Giuseppe (Cortes), arouses his jealousy and he kills him. To escape the police, Luigi leaves, taking Carmelita with him, and they finally land in a garrison town in Algiers. Luigi joins the French Foreign Legion and installs Carmelita as proprietress of a cafe which attracts the soldiers. Among them is an American, Marvin (Lyon), who falls in love with her, but she is held to Luigi by gratitude until she learns that he is planning to marry Madame Cantiniere (D'Ambricourt), a widow who runs another cafe. Luigi, jealous of Marvin, frames him and he is punished by the military authorities. Later they have a fight and Marvin is being overpowered when Carmelita stabs Luigi. The soldiers, who love her, spread the report that he was killed in a fight with an Arab, and Carmelita and Marvin find happiness together.
With no prints of Wages of Virtue located in any film archives,[5] it is a lost film.
The film was shot on extremely flammable nitrate film. One copy ignited while being projected in movie theatre Imatra in Tampere, Finland on 23 October 1927, causing the deadliest movie theatre fire in Finland ever, with 40 casualties.[6]