Home
/
RELIGION & LIBERTY ONLINE
/
‘The Gift of the Magi’ and the Power of Exchange
‘The Gift of the Magi’ and the Power of Exchange
Feb 12, 2026 11:53 AM

Amid the wide array of quaint pelling Christmastales, O. Henry’s classic short story, “The Gift of the Magi,” continues to stand out as a uniquely captivating portrait of the powerof sacrificial exchange.

On the day before Christmas, Della longs to buy a present for her husband, Jim, restlessly counting and recounting her measly $1.87 before eventually surrendering to her poverty and bursting into tears. “Only $1.87 to buy a present for Jim,” the narrator laments. “Her Jim. Many a happy hour she had spent planning for something nice for him. Something fine and rare and sterling—something just a little bit near to being worthy of the honor of being owned by Jim.”

Wishing to buy him a new fob chain for his gold watch — his most valuable and treasured possession — Della decides to sell her beautiful brunette hair — her most valuable and treasured possession. “Rippling and shining like a cascade of brown waters,” Della’s hair was so long “it made itself almost a garment for her.” And yet, shedding but a “tear or two,” she goes through with it, trading her lovely hair to secure the $20 needed to buy a present for Jim.

Rushing to find just the right chain, Della scours the village market until she finds the perfect match. “There was no other like it in any of the stores,” the narrator explains. “It was like him. Quietness and value—the description applied to both.”

Later that evening, waiting anxiously for Jim e home, Della tries to make her newly chopped hair look presentable. When Jim finally arrives, he looks at Della’s shorthair and is stunned, proceeding to offer up the gift he himself had been busy purchasing for her:

For there lay The Combs–the set bs, side and back, that Della had worshipped long in a Broadway window. bs, pure tortoise shell, with jewelled rims–just the shade to wear in the beautiful vanished hair. They were bs, she knew, and her heart had simply craved and yearned over them without the least hope of possession. And now, they were hers, but the tresses that should have adorned the coveted adornments were gone.

Filling out ic irony, we learn how Jim afforded such a thing: by selling his prized gold watch. “Dell,” he says, “let’s put our Christmas presents away and keep ’em a while. They’re too nice to use just at present. I sold the watch to get the money to buy bs.”

The two had sacrificed their greatest treasures — wealth that Della didn’t even know she possessed—to lavish gifts on those they loved. And thus, O. Henry concludes the tale:

The magi, as you know, were wise men—wonderfully wise men—who brought gifts to the Babe in the manger. They invented the art of giving Christmas presents. Being wise, their gifts were no doubt wise ones, possibly bearing the privilege of exchange in case of duplication. And here I have lamely related to you the uneventful chronicle of two foolish children in a flat who most unwisely sacrificed for each other the greatest treasures of their house. But in a last word to the wise of these days let it be said that of all who give gifts these two were the wisest. O all who give and receive gifts, such as they are wisest. Everywhere they are wisest. They are the magi.

But althoughthe story itself centers on sacrifice and gift-giving in the typical Christmas context, the power bound up in its central irony is actually echoed and imitated across our livesin more ways than we typically acknowledge. If “all is gift,” as Evan Koons discovers in For the Life of the World: Letters to the Exiles, and if we are called to render these gifts to neighbor and thus to God across all spheres of life — in our families, work, creativity, and worship — how many of these opportunities linger inour day-to-day lives?

Indeed, we oftenparticipate in suchexchanges without even knowing it. We show up to work and yield our time, talent, and energyin the service of God and neighbor, receiving our own share of blessings in turn, from the paychecks we receive to the cars we drive to the gas that fills them to the food we purchase to the love and support and wisdom we’re given by friends and family and munities that surround us. Exchange is everywhere all the time— others-oriented investment and sacrifice is being met by others-oriented investment and sacrifice — creating webs of human relationship and collaboration that have the potential to generatemighty waves of love, generosity, charitability, creativity, and whole-life flourishing, economic, spiritual, and otherwise.

The challenge, then, is to not take it for granted — to know and appreciate it, yes, but further, to actively respond toGod’s call toward service in all that we do. To create and innovate, invest and reap, trade and exchange, and do so for the glory of God,not ourselves. To enter the workplace not just to make a buck or to gain status fortability, but to give of our talents, gifts, knowledge, and wealth in active obedience to the voice of the Holy Spirit.

As Evan Koons concludes at the end of Episode 3 of FLOW, God gave us a “gift nature” not that we might plod along as cogs in some grandmachine, but that we might participate in God’s movement of divine generosity and vast abundance:

mands us not to be anxious about our needs, so then why do we toil? Merely to tend our bodies? Or also to shape our souls? In giving us work, God invites us to blend the creativity of our minds with the labor of our bodies and then to share the products of this work with one another in free exchange —to make real munal nature, our gift nature, through our personal callings. We must never see our work as simply a way to gain. We must never see our labor as an impersonal force of efficiency. We must never see our work merely as a mechanism we might control with levers and switches of power.

All our work together, what we call the economy, that’s not a machine, either. Work is always personal, because work is always relational…So let us cherish our work as the glorious gift it is — the opportunity to join with others, literally millions of others, in a divine project of vast creativity, vast abundance for the meeting of needs, for the flourishing of cities, for the life of the world.

We, like Della, Jim, and the Magi before them, can wake up each and every day, grateful and eager to bear what O. Henry so poetically refers to as “the privilege of exchange.”

“O all who give and receive gifts, such as they are wisest. Everywhere they are wisest.”

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Every man is the architect of his own fortune
Boys’ Latin students hard at work. Black and Latino young men from munities show statistically low high school graduation and attendance rates. One group of young men, however, is proving that that academic underperformance doesn’t have to be the norm. These e from a poor black neighborhood, but they’ve been taught a special skills most American students lack: learning the Latin language. They’re students at Boys’ Latin of Philadelphia Charter School where they’re required to study a language many would...
The Importance of Incompetence
An illustration of the Peter Principle. Source: Wikimedia Commons. Public Domain. Today at Public Discourse, I argue that in addition to idealism and self-interest, petence needs to be recognized as a more important factor in politics: [U]nless we add petence as a category of analysis, we will tend to view every victory for our own team as a triumph of justice or freedom or equality (idealism), and every failure the result of deep and convoluted corruption (self-interest). This is not...
A rift with ‘Europe,’ or just the EU?
After last weekend’s G-7 and NATO summits, leading figures would have the world believe that transatlantic relations are rougher than ever, literally as well as figuratively. The media have highlighted such ephemera as President Trump’s allegedly pushing the prime minister of Montenegro and his white-knuckle handshake with French President Emmanuel Macron. European politicians, however, speak in starker tones about the twin threats of a Trump presidency and an impending Brexit. German Chancellor Angela Merkel announced her despair at a campaign...
Understanding the President’s Cabinet: Trade Representative
Note: This is the post #19 in a weekly series of explanatory posts on the officials and agencies included in the President’s Cabinet. See the series introductionhere. Cabinet position:U.S. Trade Representative (USTR) Department: Office of the United States Trade Representative, which is part of the Executive Office of the President Current Representative:Robert Lighthizer Department Mission:“The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international modity, and direct investment policy, and overseeing negotiations with other...
The DeVos budget: Toward a new paradigm of public education
“If school choice effectively functions as a standing critique of public education as well as being a potential solution to problems evident in the current system,” asks Hunter Baker in this week’s Acton Commentary, “how can public school advocates ever approve of an appointee like Betsy DeVos?” That question leads to others. What is the mission of the Department of Education? And if that mission is defined as advancing public education in the United States in a particular way, then...
Audio: Samuel Gregg on the universal basic income
Last week, Facebook founder Mark Zuckerberg endorsed the idea of a universal basic e during mencement address at Harvard University. Samuel Gregg, Acton Institute Director of Research, joined host Drew Mariani on Relevant Radio yesterday to discuss the arguments for and against the idea, and whether it would even work as advertised. You can listen to the interview via the audio player below. ...
What are the arguments against international trade?
Note: This is post #35 in a weekly video series on basic microeconomics. Does trade harm workers by reducing the number of jobs in the U.S.? Is it wrong to trade with countries that use child labor? In this video by Marginal Revolution University, Alex Tabarrok discusses some of the mon arguments against international trade. (If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the...
Bad economic policies create moral problems
In Europe, the answer to one bad economic policy seems to be another bad economic policy. However, if such failures intersect in the right way, the problem goes from being a fiscal to a moral problem. Take the issue of“eurobonds,”a concept wholeheartedly supported by newly elected French President Emmanuel Macron. Think of eurobondsas the redistribution of debt. The mechanism essentiallypools the collective debt of itsremaining 27 members at the EU level. Eurobondswould allow nations like Greece to borrow more money...
Video: Lawrence Reed on real heroes
On May 18th, the spring 2017 Acton Lecture Series wrapped up with an address from Lawrence Reed, president of the Foundation for Economic Education. Reed’s talk was based on his recently released book,Real Heroes: Inspiring True Stories of Courage, Character, and Conviction. We’re pleased to share the video of his lecture below. ...
Wim Decock named the 2017 Novak Award winner
Professor Wim Decock In recognition of Professor Wim Decock’s outstanding research into the fields of theology, religion and economic history, the Acton Institute will be awarding him the 2017 Novak Award. Professor Wim Decock teaches legal history at the Universities of Leuven and Liège (Belgium). He is an associate fellow at Emory University’s Centre for the Study of Law and Religion (USA) and an affiliate researcher at the Max-Planck-Institute for European Legal History (Germany). Decock holds an M.A. in Classics,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved