Luke gets caught up in the Christmas spirit and wants to buy Kate a diamond ring that he can't afford. After he buys it, he tries to sell it to pay for Kate's hospital bill. Luke and Grandpa find out what Kate has for them on layaway.
The McCoys find out that they are three months behind on their mortgage payments and will lose the farm if they can't come up with the money. Grandpa fears that he will have to sell a 200 year old flintlock family rifle to get the payment.
Grandpa, Luke, and Kate return to Smoky Corners for Great Grandma McCoy's 100th birthday, but worry that their modest keepsake gifts don't measure up to those given by the newly-prosperous McCoys who remained in West Virginia.
Grandpa decides to turn the tables after a fast-talking shooting gallery proprietor hustles Little Luke out of $14 in proceeds from the sale of church social tickets.