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.
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.
When Grampa and George win a baby pig in a raffle, Kate, Luke and Pepino want to keep it as a pet, but Grampa and George are thinking more along the lines of lunch.