Alice is knitting baby clothes to make some extra money for Christmas. When Norton comes down and asks Ralph if he can hide Trixie's Christmas present in the Kramdens' apartment, Ralph says yes and sticks the present in the bureau drawer -- where Alice has hidden the baby clothes. A moment later, when Norton tells Ralph that Trixie has made a doctor's appointment for Alice, Ralph is sure that Alice is pregnant. He decides he has to make some more money in a hurry so that his future son can go to college, so he answers a newspaper ad for a Santa Claus job. What Ralph doesn't know is that the guys who placed the ad are bookmakers and that they plan to use the Santa to collect bets. Ralph is hired and so is Norton -- as an elf. Ralph and Norton set up shop on the sidewalk, and bettors walk by and drop in their money and slips of paper with the names of the horses they want to bet.