I basically agree with PoppyTransfusion' reply.
However, I felt from the first appearance of Lyda Salmonova, that her character of Lyduschka was that of a gypsy girl, stereotyped as they were. For comparison, take the earlier Carmen characters in movies before 1930.
The English subtitles and the German reconstructed titles for the 2013 version - the best you can currently have of this film - describe Lyduschka as a traveling girl, or wandering girl. I do not know German, but I found the rendition of "gypsy" in an official German site to describe Lyduschka:
http://www.filmportal.de/film/der-student-von-prag_eea77e18d0cc4d038e114d869caf1431
I suppose the original tried to be politically correct, going for the more vague description of the character; anyway, gypsies are vagrants by nature, associated with wild dancing and merriment. Also, unfortunately, for finding ways to make money out of anything; hence, the scene described with the written note.
By the way, I found the dancing scene at the tavern pretty wild and daring, but Europeans, and Austrians in particular, were not as repressed in the 1910's than they would be in the 1930's...
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