Home
/
RELIGION & LIBERTY ONLINE
/
‘The Gift of the Magi’ and the Power of Exchange
‘The Gift of the Magi’ and the Power of Exchange
Apr 18, 2026 3:59 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
If We Ban Sex-Selective Abortions, Are We Being Racist?
. The premise Ms. Bazelon puts forth is that the growing movement to make sex-selective abortions illegal in the U.S. is based on racial biases towards Asians, e from cultures where sex-selective abortions are mon. Bazelon states, The International Human Rights Clinic of the University of Chicago Law School and the National Asian Pacific American Women’s Forum are publishing a new study that exposes banning abortion based on sex-selection for what it is: a way to restrict abortion, not bat...
U.S. Southern Borders Overwhelmed By Children
It has long been apparent that U.S. borders are far from secure. Border patrol agents are stretched thin, especially along the southern states, dealing with illegal immigrants, human traffickers and smugglers, and the drug cartels. Now, there is a new problem with no easy solution: children teeming into the U.S., many under the age of 12. According to The Washington Times, The flood of young children pouring across the southwestern border is worse than the administration has previously acknowledged, and...
Schooling Journalists In Religion
Do you know the name of the author and publisher of the Book of Ephesians? Do all Mormons practice polygamy? What about the two major branches of Islam? Apparently, many journalists don’t know the answers to these questions either. (That first one was a real question asked by a journalist to Michael Cromartie, of the D.C.-based Ethics and Public Policy Center.) Given how much religion informs the lives of most people on the planet, and our news, it is a...
Jonathan Witt on the Failure of ‘Social Business’
Jonathan Witt, research fellow at Acton, recently wrote a piece at The Federalist about “social business.” He argues that it might do more good to own and operate an ethical business that follows through on its contracts and “respects the dignity of employees and customers,” rather than trying to have a “social business.” Witt begins by talking about a cardboard bike. In 2012, Izhar Gafni became relatively famous by creating a sturdy cardboard bike that could be sold to the...
Unemployment is a Spiritual Problem
The longer that Americans are unemployed, the more likely they are to report signs of poor psychological well-being. A recent Gallup survey found that about one in five Americans who have been unemployed for a year or more say they currently have or are being treated for depression. Gallup finds that unemployed Americans are more than twice as likely to say they currently have or are being treated for depression than both those with full-time jobs and those who have...
No Doubt About It: Human Trafficking Is Big, Big Business
It is a business that exists in the shadows. You won’t see a billboard for a domestic slave, nor a glossy magazine spread for the latest in forced labor. While cities struggle to rid their streets of prostitutes, they forget these people are victims of crime. Yet, make no doubt: human trafficking is big, big business. The International Labor Organization (ILO), a United Nation’s agency dealing with labor issues, has released a report makes clear the financial aspects of human...
How Religious Freedom Helps the Poor
Freedom to practice one’s faith and be a person of faith can be instrumental in enabling the poor to achieve some modicum of social and economic freedom, says Rebecca Shah: Religion is no panacea, but aspects of religion can activate certain practices and partnerships among its adherents that can motivate and encourage economic development. If modern economics continues to yield an understanding of human development that ignores the role of religion, governments and development institutions will persist in acting as...
What Libertarians Can Learn from Edmund Burke
In his new book, The Great Debate, Yuval Levin explores the birth of America’s Left and Right by contrasting the views of Thomas Paine and Edmund Burke. I’ve written previously on his chapter on choice vs. obligation, and in a recent appearance on EconTalk, Levin joins economist Russell Roberts to discuss these tensions further, addressing the implications for libertarians and conservatives a bit more directly. It should first be noted that Roberts and Levin offer a dream pairing when es...
How To End Poverty By Jim Wallis
It is not often that Sojourners president Jim Wallis puts forth ideas that align with those of the Acton Institute. However, in a recent interview, Wallis (touting his new book, mon Good: How the Gospel Brings Hope to a World Divided)said that he recognizes that there are three keys to ending poverty: work and economic activity, innovation, education. He also says his hometown of Detroit has a big lesson to teach us: Detroit shows that the government isn’t enough,” said...
John Nash: A Beautiful Austrian Mind?
My older son’s college psychology class was recently assigned the film A Beautiful Mind, about the Nobel Prize winning economist and schizophrenia sufferer John Nash. The assignment was to watch the film, dig into Nash’s biography, and report on how the film altered Nash’s story of mental breakdown and recovery. We watched the film together as a family (my second viewing), checked out the biography by Sylvia Nasar from a local library, and generally geeked out on Nash and game...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved