Squire Phin endears himself to the residents of Palermo for his ability to settle all disputes, while his brother, Hiram, who returns after 10 years' absence, is well remembered and disliked for being the town bully. Hiram learns that Judge Willard is using the town treasury for his own ends and seeks to defeat him in an election. Meanwhile, Squire Phin, who loves Willard's sister, campaigns for the judge. Hiram is appeased when Squire Phin persuades Judge Willard to return the money, and the peacemaker receives the judge's permission to marry his sister.