Horace drops his watch when the kids run by and jostle him. The watch is shown in close-up at his feet. In the next shot, Horace is watching the kids run away, and there is no watch at his feet.
Hermy has a missing front tooth that is obviously blacked out instead of actually missing.
Although the flashback scenes take place in June 1935, a poster for the 1938 film The Toy Wife (1938) is seen.