One rainy day while his father listens to his old records, his mother polishes a silver platter, and his brother enjoys his baseball card collection, Little Bill discovers his own treasure, a talent for storytelling.
One night, little Bill is positive there are mean things in his dark closet and that they are just dying to get him. Only when Alice the great performs a magical tucking-in trick do the mean things go away for good.
While playing stick-can hockey with his friends, Little Bill discovers what he thinks is a diamond and they all start imagining what it will be like to be rich.
Although Little Bill is sad when a friend of the family dies, he remembers the friend's lesson of saying "Merry Christmas" to get people to stop fighting.