The Forresters got a good price for the bears and were able to get everything on the Baxters’ list with money left over. The relations between the two families are strained because of Lem’s attack on Baxter’s veracity; despite that, Buck stops by to tell the Baxters they think they have killed the last of the wolves but the bears are marauding.

Jody spends a lot of time hunting with Flag. Jody makes his mother a necklace out of beans for Christmas. Before the Baxters leave for Volusia, Jody and Baxter go hunting so they have something to trade. Old Julia refuses to follow the obvious trail of a well grown fawn, but when she uncharacteristically refuses, Baxter thrashes her for her stubbornness. The fawn was Flag; Julia is wiser than her masters because she immediately recognized Flag as family. Baxter is humbled. They finally get several deer and leave the next morning. Jody is not happy about leaving Flag tied up, but he wants to go and see Grandma Hutto.

Ora does her trading, and the shopkeeper wants to hear about life in the scrub after the floods. Baxter confirms all the rumors the man has heard. The Baxters get a good price for the goods they brought to trade. Ora sends Jody outside so she can buy him something special for Christmas. Baxter buys dress goods as a surprise for Ora before they go to Grandma Hutto’s.

The two women do not get along, and the normally cozy home is chilled today. The Baxters decide to come back and spend Christmas and Christmas night. Jody is thrilled until he remembers Flag, but Grandma Hutto will be glad to have the fawn. Jody learns that she was as exasperated with Oliver as he is and considers forgiving Oliver—but never Twink Weatherby.