In this post-sexual revolution age, it's hardly ever acknowledged that courting couples under the old sexual codes were strongly conflicted and stressed about sexual intimacy - especially women. Most courting couples had to abide by the ruthlessly strict moral codes of their day. With access to contraception being heavily restricted and pregnancy out of marriage being the ultimate life destroyer, they had little choice. It's hinted, but not outright acknowledged, that Sid's parents had a shotgun wedding. The outcome seemed to have been OK for the father, but it had left the mother clearly frustrated and unfulfilled.
The problems with money and with Sid and Pete having to endlessly postpone their wedding became a flashpoint of sexual frustration, especially for Sidney - not so much Pete, strangely enough. The scene of their physical and flirtatious wrestling was quite poignant, underlying their sexual frustration (reminiscent of the pillow fight in My Brilliant Career). The intervention of the judgemental mother reduced something playful and beautiful to a grubby little incident.
The presence of the flirty 'bad' girl trying to seduce Pete was annoying, but served to show that he was a decent and loyal man. I doubt if most men of the era were so honourable.
This is a beautiful little gem of a film, that highlights the problems of young people struggling not only with financial problems and family loyalty, but also the unnatural sexual morality imposed on them.
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