When the mill closes due to bankruptcy, Charles loses out on two months' worth of crucial wages that would have officially cleared his account at the Mercantile. With a large bill left unpaid, Charles takes on several odd jobs at once. Mary quits school temporarily to work overtime with seamstress Mrs. Whipple, while Laura does all the chores and assists Caroline with the crops.

When Walnut Grove builds its very first bank, the cold and heartless Mr. Sprague settles in to run it. Charles tries to get on the man's good side right off the bat, but Mr. Sprague has been in the banking business long enough to sniff out these kinds of things, and after refusing to take the bait, he proceeds to turn Charles down flat when he requests an important loan.