The seagulls pick up the pace and the peach glides quickly through the clouds. The travelers see the Cloud-Men at work, using snow-machines, frost factories, and wind producers. They pass the Cloud-Men’s city, with caves deep in the clouds and Cloud-Men’s wives and children cooking and playing on the billowy clouds. A large bat swooshes curiously over the peach, and Miss Spider expresses her wish that morning would come, a feeling echoed by the whole group. When the sun rises, the friends get up to stretch their legs and to their delight see land below. A vast city stretches out under the peach, with skyscrapers reaching up towards them. James cannot contain his excitement as he realizes that they have crossed the Atlantic Ocean and are floating over America, above New York City. Earthworm immediately starts to worry about how they’ll get down. James explains that all they need to do is gradually release the seagulls and gently lower the peach down.

Below them, on the streets of New York City, pandemonium breaks out because of the huge ball suddenly hanging above the city. Sirens wail and news stations interrupt all programing with live coverage of this mysterious, sinister object.