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The man on the porch is Clifford Snyder, a tax collector, and he points a gun at Searchlight when she attempts to protects Little Willy. Willy intervenes, and Snyder demands that Searchlight stay outside. He is visibly afraid of her. He keeps his gun drawn until he and Willy are in Grandfather’s room. Grandfather acts distressed and refuses to communicate through hand signals. Snyder insists that Grandfather has not been paying his taxes. Willy believes that they have paid every bill, as he has continued to do so.
Willy fetches the letters he found in Grandfather’s box and shows them to Snyder. They owe the government $500. Snyder threatens to seize the farm if they are unable to pay it.
Little Willy is determined to fix the situation and pay the government the $500. Doc Smith still believes that Willy should come and live with her and let Mrs. Peacock take care of Grandfather. Willy refuses, but he understands now what taxes are for; Doc Smith explains that taxes are for the state so that the government can continue to care for the people.