This is a caricature of Goethe's "Faust," and reflects the dreamy quality of animation of the time.

Confident of his power, the devil Mephist wreaks acts of violence on the world, such as sending angels down to the earth. God then orders Mephist to send the scholar Faust to hell.
While giving the order, God had already given new life to the angel who has fallen to the earth as Princess Margarete.
In the meantime, Faust experiences a sense of futility in his studies, thinking that however hard he may study he will never accomplish his goals. Just then, the devil Mephisto appears in front of him. Faust carelessly signs a contract, in which he promises he will go to hell if Mephisto satisfies his desires.
Mephisto turns Faust into a young man by magic. Faust goes to the town, meets the beautiful Princess Margarete, and falls in love with her.

Meanwhile, Faust is forced to accept the unreasonable demand of the King, father of Margarete, to find the most beautiful goddess in the world, known by the name of Helen.

Together with Mephisto, Faust starts for the mountains of Hartz, where devils are said to gather on the night of Walpurgis. (Source: tezukaosamu.net)