Summary

One in this comedy series about a talking horse. In this episode, Mr. Ed and Wilbur sing some Christmas songs together and Mr. Ed offers to tell his friend the true story of Christmas, but a busy Wilbur declines, saying he has shopping to do. Mr. Ed gives him a list and requests that Wilbur buy presents for his horse friends, but Wilbur says that he cannot. He meets up with Gordon, who has also been given a long list by Winnie, and they decide to "be sensible this year" and set a fifteen-dollar limit, much to their wives' dismay. Wilbur then finds that Ed has taken down the decorations in the barn to show his annoyance about the presents, explaining about the money limit, and Ed decides to do his own shopping over the phone. Wilbur and Gordon head out to the shops and visit a jewelry store, where they admire some expensive items before realizing that they cannot buy them. The proprietor is stunned at their small budgets, but they remain committed to the plan. Carol and Winnie, however, "go overboard" and spend far more than fifteen dollars, assuming the men will break the silly rule as well, but when Wilbur and Gordon return home, they find that they kept to it after all and have very disappointing gifts for them. Things are made worse when Ed's many packages are delivered to the barn and Carol thinks that Wilbur spent a bundle on his horse rather than on her.

Wilbur lectures Ed about his spending and says that the horse gifts are going back to the store, but Ed protests that the tradition of Christmas is actually entirely because of a horse, and he finally tells the skeptical Wilbur the true story of the holiday: Many years ago, Santa Claus attempted to make toys for all the children in his town, but never managed to provide for them all. His horse, coincidentally also named Ed, decides to make him famous and sends him off to the bank to get a loan from "Scrooge Kirkwood" to finance his workshop. Santa tells Scrooge that he will deliver toys to every child in the world in one night or shut down entirely, and Scrooge agrees to the deal. Santa hires a new staff of toymakers and Ed serves as foreman, also taking the time to teach Santa's reindeer to fly and drawing up a flight plan. He suggests that Santa save time by going down the chimney, and then teaches him his signature chortle, thus creating the icon and the holiday now known to the world. Wilbur is convinced that Ed has the right giving spirit after all and agrees to let his horse's friends keep their gifts. Later, Wilbur and Gordon surprise their wives with more satisfactory gifts and agree to be "sensible" the following year instead. Finally, Wilbur discovers Ed dressed as Santa, prepared to celebrate in style as they deliver their gifts. Commercials deleted.