Looking to clean up Lars Hanson's old house in hopes to sell it for a nice profit, Mrs. Olsen stumbles across an old bearer bond. Instead of cashing it in and bankrupting Walnut Grove, she decides to use that bond to call in favors for her family – starting with changing the name of the town. However, when she coerces Nels into running for mayor, Laura and the others on the town council uses a bit of gossip to convince Almonzo run against him.

A tiny circus performer, Lou, decides to look for work in Walnut Grove after his wife dies while giving birth to his baby girl. A prejudice Mrs. Oleson uses her power to make sure that the dwarf doesn't find work. She even threatens Mr. Anderson that she would close her account at the bank if he hired Lou. To keep the infant alive, the dwarf must steal food. Mrs. Oleson decides to press charges when she finds out who stole the food. When Nancy falls in a well, Lou risks his life to save the girl. That's when Mrs. Oleson decides that being small has its advantages and decides to drop all charges.