In Washington, D.C., in 1890, a distressed Secretary of the Treasury confers with the Chief of the U.S. Secret Service about a Texas counterfeiting ring that has been flooding the country with phony money. To reassure the Secretary, the Chief reveals that he has requested help from the Texas Rangers. Later, at the Rangers' headquarters in Willcox, rangers Dave and Chito Rafferty are assigned to the case. As they suspect that the ring is located in the lawless town of Badland, the rangers decide to investigate while posing as wanted outlaws. Outside Badland, Dave, whose undercover name is Chuck Bennett, "the Tioga Kid," and Chito, now called Pancho Chompez, steal a bag of gold from George Dirkin and his gang of outlaws, who have just robbed a stagecoach. They then take the gold to the Badland saloon and are about to ask owner Cash Carleton, the local fence, to buy it from them when one of Cash's disgruntled customers threatens to shoot him in the back. Dave outdraws the other man, however, and a grateful Cash takes Dave and Chito to his ranch. Before doing business with the rangers, Cash accepts a shipment of phony money from Simms, a counterfeiter posing as a grain salesman. Cash then pays for the rangers' gold with counterfeit money. As they are leaving, Dave and Chito notice a man sneaking into Cash's barn and go to investigate. After the man knocks Chito unconscious and escapes from Dave, the rangers inspect the barn, but find only sacks of corn. The next day, Dave and Chito recognize the town blacksmith as the man in the barn and learn that he is Bert Conroy, an undercover Secret Service agent. Later, in his saloon, Cash hires Dirkin and his gang to steal ink and paper, which Simms needs to continue his operation, from the Willcox newspaper office. Overhearing their conversation, Dave and Chito offer to join the raid, and Dirkin reluctantly agrees to take them. Conroy also learns about the raid and, using carrier pigeons, sends a message to Willcox, requesting assistance. As the gang rides into Willcox, they are met by gunfire, and two outlaws are killed. Back in Badland, Dirkin accuses Dave and Chito of setting up the gang in Willcox, but Cash deduces that the only way the law could have heard about the raid was by carrier pigeon. When Cash then learns from Simms that Conroy was the only person in town to buy pigeon feed, he shoots him in cold blood. Later, at Cash's ranch, Chito and Dave discover newly stolen paper and ink in the barn and wait to see who will pick it up. After Simms carries off the goods, Dave and Chito break into his feed shop and find some phony money and a hidden printing press. They are unable to locate Simms's counterfeiting plates, however, and after they sneak out of the shop, Velvet, Chito's girl friend who has been hired by Cash to sing in his saloon, inadvertvently exposes Chito as a Texas Ranger. Chito and Dave are pursued on horseback by the gang, but escape and return to town, where they set Simms's shop on fire. As hoped, Simms rushes in to save his plates, and Dave grabs them at gunpoint. Dirkin's gang, however, has surrounded the shop, and the rangers become involved in a gunfight with them. With help from Velvet, Dave is finally able to send one of Conroy's pigeons to Willcox. Soon reinforcements arrive in time to rescue Dave and Chito and rout the gang.