Kathrina and her brother Jan bother their mother while she's busy making her New Year's crullers; she gives each child a penny and sends them out. They buy cakes at the baker's. Kathrina gives hers to a beggar who eats it ravenously. That night the children ask their mother for some crullers but are told they are for New Year. That night after going to bed, the temptation to go downstairs and steal a cruller is too much for Kathrina. She goes to the dining room. She sees a thief enter. He is taking away all the family silver. She stops and recognizes the beggar. She is sorry for him when he tells her of his hungry family. But finally she persuades him not to steal the silver. She empties all the crullers into his hat, finally adding to them one that had been laid aside. This one had a little New Year's ring in it for herself of which she knows nothing. Next day the crullers are missed and all say they know nothing of it except Kathrina. She is blamed and sent to solitary confinement. Her brother Jan steals off to the pond and goes skating. The ice breaks and he is saved by the beggar. The beggar recognizes him and takes the gold ring from his pocket and puts it in a piece of paper with a note to Kathrina. It says she can tell about the crullers as he is safely on his way. Kathrina tells her parents and they praise her for her bravery in saving the family silver.