Home
/
RELIGION & LIBERTY ONLINE
/
‘The Gift of the Magi’ and the Power of Exchange
‘The Gift of the Magi’ and the Power of Exchange
Jan 28, 2026 4:34 PM

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
Review – Arthur Vandenberg: The Man in the Middle of the American Century
^This is a guest post for the Acton PowerBlog. By Gleaves Whitney Some years ago, the bestselling biographer David McCullough outlined the “missing history” of our nation’s capital – the histories that had yet to be written. Among the people he believed merited more in-depth study was Michigan Sen. Arthur Vandenberg. In Hendrik Meijer’s latest biography, Arthur Vandenberg: The Man in the Middle of the American Century, McCullough’s es true – and then some. No less mentator than Cokie Roberts,...
The arts of liberty: Education for image bearers
In the United States, there is a constant background critique of education. Complaints include the following: Teachers are too liberal. Professors are too abstract. Schools don’t do a good job of preparing students for work. Education costs too much, both for governments and the parents and students paying tuition. Yet despite all the dissatisfaction, we value education highly. When we are honest with ourselves, we recognize that an educated public brings with it all kinds of benefits. It is tremendously...
Harry Potter: Venture capitalist
I recently read the first Harry Potter novel to my six-year-old son Brendan, then watched the film with him. It was all the fun I hoped it would be: he is just the right age for it — excitedly asking what is going to happen next and jumping and cheering at the end. As typically happens, I can’t stop at just the first one, so I’ve been watching the rest of the films with my wife Kelly. (I may read...
Conquering famine: 3 reasons global hunger is on the decline
In confronting the problem of global hunger, Western activists, planners, and foreign aid “experts” are prone to look only toward various forms of economic redistribution. Even among nonprofits, churches, and missions organizations, we see an overly narrow focus on temporary needs and material donations with little attention to individual empowerment and institutional reforms. Meanwhile, global poverty and hunger are on the decline—a development driven not by top-level tweaks and materialistic trickery, but by a bottom-up revolution of freedom, innovation, and...
John McCain, the Hanoi Hilton, and public virtue
“Sen. John McCain, who passed away on Saturday, is undeniably the most famous prisoner of war held captive and tortured by the North Vietnamese,” says Ray Nothstine in this week’s Acton Commentary. “McCain was one of 591 Americans returned by North Vietnam over several months during ‘Operation ing’ in 1973. But in our current politicized era, McCain’s fame somewhat overshadows the leadership and lessons of many other great Americans tortured by their Marxist captors.” McCain often praised fellow prisoners as...
FAQ: What is the ‘U.S.-Mexico Trade Agreement’?
The United States and Mexico renegotiated the terms of their free trade agreement, President Donald Trump announced this week, replacing NAFTA with something he dubbed the “U.S.-Mexico Trade Agreement.” Here are the facts you need to know. Why did the U.S. negotiate a new trade agreement with Mexico? President Trump promised to renegotiate NAFTA during the 2016 presidential campaign, seeking more favorable terms for the U.S. auto industry and manufacturing sector. As of this writing, Canada has not agreed to...
What difference does reaching the middle class make?
Too often, advocating for economically sound policies is dismissed as extraneous to the life of a Christian. Faith leaders may see improving the lot of those living in this world as worthwhile but, fundamentally, outside the Christian’s mission. But if they understood the difference these policies make for “the least of these,” they may reconsider. It may be a cliche to say that those in the West take for granted the kind of daily pleasures and amenities denied much of...
Alejandro Chafuen in Forbes: The Moral Aspects of Money
Acton’s own Alejandro Chafuen appeared in Forbes to discuss monetary theories from the ancient Greeks to today’s crytocurrencies. The following is an excerpt from Chafuen’s essay, titled Moralists and Money: From Gold to Bitcoin. For the full article, readers may click here. Monetary topics are some of the first economic issues to be studied with some rigor. Since the first writings by the Greek philosophers, such as Plato, Aristotle, Hesiod and Xenophon, and until the 16th century, the moral questions,...
Radio Free Acton: Entrepreneurship in Guatemala; Upstream on the future of the arts
On this episode of Radio Free Acton, host Caroline Roberts speaks with Jonathan Porta, co-founder of merce platform UTZ Market in Guatemala, on his experiences in developing his business and on entrepreneurship in Guatemala. Then on the Upstream segment, Bruce Edward Walker talks to David Marcus, New York correspondent for The Federalist on the future of the arts. Check out these additional resources on this week’s podcast topics: Check out Utz Market Learn more about sustainable development and effective poverty...
Why financial intermediaries fail
Note: This is post #91 in a weekly video series on basic economics. Financial intermediaries serve as a bridge between borrowers and savers. When those bridges collapse the effects can be disastrous: businesses go bankrupt, workers get laid off, and people lose their homes. These negative effects show you how crucial intermediaries are to our lives. What exactly causes financial intermediaries to fail? In this video by Marginal Revolution University, economist Tyler Cowen looks at four reasons: insecure property rights,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved