It is Christmas in New York, but for two young lovers, Jim and Della, the prospects are bleak, as both are out of work and penniless.  But as those familiar with the famous O. Henry story are aware, their dilemma is solved when both part with their most precious possessions (she her beautiful long hair, he his heirloom pocket watch) in order to buy presents for each other, thereby creating, at least for a magical moment, an aura of warmth and giving in the cold, impersonal winter city.