In 1840 New Hampshire, Jabez Stone (James Craig (actor)), a poor kindhearted farmer, is broke and plagued by bad luck, and, with the local money-lender, Miser Stevens, about to foreclose on his farm, he has reached the limit of his endurance. After a series of mishaps, he impulsively declares that he would sell his soul to the Devil for two cents, and moments later the devil appears, calling himself "Mr. Scratch" (Walter Huston). He appears to offer Jabez a bargain: sell his soul in return for seven years of good luck and prosperity. Scratch tempts Jabez by magically revealing a hoard of Hessian gold coins, which appears from under the barn floor, and, unable to resist the lure of the gold, Jabez signs the contract. He begins his new life with hope, paying off his debts, buying new tools and supplies, and new clothes for his wife and mother. While the women are shopping, Jabez meets and becomes friends with famous New Hampshire Congressman and orator Daniel Webster (Edward Arnold (actor)), a friend of his wife's family, and a widely loved figure who champions the cause of the poor farmers - although we learn that Webster himself is being tempted by Mr. Scratch to sell his soul, in return for fulfilling his ambition to become President of the United States.
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