The ranchman sells his horse to Joe, supposedly a rancher, but in reality a counterfeiter. Joe rides into town and passes off a considerable amount of bad money. One of his victims is Fred. Another victim later meets Joe and knocks him from his horse. Joe fires after the man, and the bullet strikes Fred in the hand. Seeing a riderless horse, Fred follows it, as he knows it is the counterfeiter's horse. It brings him to the cabin where Dolly and her father live. Fred has previously met Dolly, and the two love each other. They hear the father coming and Fred goes up into the attic to hide. The sheriff and his men have decided to search all suspicious cabins for the counterfeiters. They arrive at the ranchman's cabin, just as the father is examining a counterfeit bill that Fred has been showing to Dolly. Things look bad for the ranchman, particularly when a deputy finds another roll of money, also counterfeit, which Joe had given him for the horse. A drop of blood falls on the sheriff's arm. He orders his men to search the attic above, and Fred is brought down. Fred tells what he knows, and the sheriff sends some of his men to search Joe's cabin. Counterfeiting apparatus is found and confiscated, Joe is taken a prisoner, and Dolly falls a prisoner to Fred.