Peggy is a high-spirited young woman from a poor family. One day she catches the eye of a wealthy lord, who proposes marriage and wants to introduce her into his social circle. But complications arise when the lord's nephew also becomes attracted to Peggy.

When Mrs. Harding dies, she leaves a mysterious letter to her pastor. The note tells how her cold, miserly husband worked her to death. She asks the pastor to administer a small trust which she has bequeathed her daughter so that the girl might enjoy some finery which her father has always denied her. The village milliner carries the latest hat styles from New York, one of which has caught the girl's fancy. The pastor, loyal to the dying mother's wishes, buys the young lady the hat. Soon gossip spreads through the village...