Raveloe lies far off from busy industries. The old-fashioned country ways still hold, although prices are high and the farmers well-off. The winter feasts are times of great merrymaking. Although the finest of these may be at Mr. Osgood's, possibly the greatest abundance is to be found at the Red House, home of Squire Cass, the greatest man of Raveloe.
The Squire's wife is long dead, and his sons have turned out rather ill. The second son, Dunstan, is "a spiteful jeering fellow," but Godfrey; the eldest, is well thought of. However, there is talk that if he goes on as he has been, he may lose the hand of Nancy Lammeter.
These two sons of the Squire are talking together in the parlor of the Red House. Godfrey has collected some rent money from a tenant and turned it over to Dunstan. Now the Squire is threatening the tenant, and Godfrey must have the money. However, Dunstan is not inclined to repay it and says that he may have to tell the Squire that Godfrey has secretly married and now will not live with his "drunken wife." When Godfrey says that he must have the money, Dunstan suggests he sell his horse, Wildfire. There is a hunt the next day at which there may be some buyers. Godfrey does not care to go, for he is looking forward to seeing Nancy at Mrs. Osgood's birthday dance the next day; and in any case he does not want to sell his horse. However, he sees there is no other way, and at last he agrees to let Dunstan take the horse and sell it for him. With that, Dunstan leaves Godfrey to ruminate on the bitterness of his life.
For years, Godfrey has wooed Nancy Lammeter, but in a moment of passion he had let himself be deluded into the marriage that is a blight on his life. Now he lives in fear that the marriage will be revealed to his father, who will surely disinherit him. The worst effect would be to separate him from Nancy, whose presence is his only joy.
The next morning, Dunstan sets off for the hunt. As he passes Marner's cottage by the Stone Pit, he wonders why he has never thought to "persuade the old fellow" into lending his money. He almost turns back to discuss this with Godfrey, but then his inclination to vex his brother persuades him to go on and sell the horse.
At the hunt, a man named Bryce buys the horse readily. However, instead of taking the horse in at once, Dunstan decides to follow the hunt. He takes one jump too many and kills the animal on a stake.
Dunstan is unharmed, but he does not relish the embarrassment of being caught walking. Since no one has seen him fall, he leaves the horse and sets out for home. Because walking is so abnormal to him, he carries his whip to keep his sense of reality. The whip is Godfrey's, but Dunstan has brought it because it makes a better show than his own.
It is becoming dark and misty as Dunstan nears Raveloe. Near the Stone Pits, he again comes on Marner's cottage. He is reminded of the miser's money, and he decides to stop in and borrow a lantern and perhaps discuss this money question. He finds the cottage door open and goes in. A bit of meat is cooking over the fire, so the weaver has not gone far. Dunstan wonders whether the old man is dead. If so, no one would need his money. With that, Dunstan forgets that the weaver may not be dead. He quickly discovers the money in its hiding place under the brick hearth. He replaces the bricks and carries the bags out the door, closing it behind him and stepping off into the darkness.
