Based on the classic O. Henry short story and told through music and lyrics, this is a story of two very poor people who loved each other so much that each sold their most prized possession to buy the other a Christmas present. In addition to their story, there are also various city folk going about their holiday business, and the hilarious plight of a cheerful bum named Soapy, who wants only to get arrested so he can spend the night in a cozy cell, all told by a tuneful newsboy-narrator, Willy, who adds his own melodious contribution and informative observations to the delightful proceedings.