In 1840, in the town of Cross Corners, New Hampshire, the words of Massachusetts senator Daniel Webster stir the farmers to organize a Grange movement to defend against the loan sharks threatening their lands. One victim of the creditors is Jabez Stone, who is in danger of losing his farm to Miser Stevens unless he can raise the money to pay his mortgage. When, in a moment of despair, Jabez offers to sell his soul to the devil, Mr. Scratch strolls out of the mist and offers the farmer seven years of prosperity in exchange for his soul. Jabez accepts the bargain, and the devil sears the date 7 Apr 1847 into a tree to commemorate their contract. With his newly found wealth, Jabez pays Stevens, purchases supplies and lends money to his fellow farmers to buy seed. When Webster comes to town, dogged by Mr. Scratch, Jabez delivers a speech in support of the politician, thus winning acclaim from the townsfolk. After his wife Mary becomes pregnant, Jabez tries to chop down the ominous tree, but Scratch warns him that that would constitute a breach of contract and invokes a hailstorm that destroys all the crops except Jabez's. The farmers begin to resent Jabez when he offers to pay them to harvest his crops, but destitute, they accept his wages. On the night of the harvest dance, Jabez's son is born and christened Daniel after his godfather, Daniel Webster. The birth is followed by the arrival of Belle, Scratch's bewitching emissary, who claims to be the baby's new nurse. Seven years pass, during which time Jabez has come to value only money, prompting Mary to visit Webster and confide her unhappiness. Webster offers to speak to Jabez and accompanies Mary to Cross Corners, arriving on the night that Jabez has planned an ostentacious party to flaunt his luxurious new house. While Jabez awaits his guests, the farmers air their grievances about him to Webster. Mary, who is still living in their modest old homestead with Jabez's mother, attends the party and is confronted by Belle, who commands her to leave. Stevens is the next arrival, and he sorrowfully confides to Jabez that he, too, shares a pact with Scratch. Belle's otherworldly guests then arrive, followed by Webster, who lectures Jabez about taking advantage of the farmers. After Jabez angrily orders both Mary and Webster from his house, Scratch appears with the soul of Stevens neatly encompassed by his kerchief. When Scratch offers to extend Jabez's contract in exchange for his son, the farmer scurries after Webster and pleads for his help. Webster agrees to defend Jabez against the devil, and they return to the barn to meet Scratch at the midnight deadline. At twelve o'clock, Scratch appears and Webster argues that Jabez, as an American citizen, has the right to a jury trial. Scratch consents, but insists upon choosing the jury, summoning Captain Kidd, Benedict Arnold, Simon Girty and nine other traitors. Justice Hawthorne of the Salem witch trials allows Webster to argue his case on the condition that he surrender his soul to the devil if he loses. In Jabez's defense, Webster appeals to the jury's Americanism and their belief in its principle of freedom and suggests that they forfeited their freedom to the devil. Webster concludes that they may redeem some of their lost freedom by pardoning Jabez. Webster wins his case, and as the jury tears up Jabez's contract with the devil, the new house bursts into flames. After Mary and Jabez embrace, Jabez forgives the farmers' debts and joins the Grange. With his deal with Jabez overturned, Scratch turns his sights toward the audience.