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As winter approaches, Cranford is beset by sorrows and struggles to regain confidence.

Dr. Harrison's housekeeper, Mrs. Rose, discovers a leg of mutton has been stolen from the kitchen window on the very same night that Mr. Johnson, the owner of the town's most important store, is mugged. The ladies decide that a crime wave has hit Cranford.

Mr. Johnson, meanwhile, becomes convinced that Job Gregson, the local ne'er-do-well, must be his attacker and Job is arrested. Job's son, Harry, decides to make a confession to Mr. Carter of his own part in the poaching to save his father from transportation and has to bear the acute disappointment that Mr. Carter feels. Mr. Carter pleads Job's case with Lady Ludlow, saying that without her intervention, Job will be found guilty and the Gregson family will starve. Lady Ludlow is immovable — the Gregsons are not her responsibility.

Christmas arrives and Cranford huddles together to celebrate, though the town has been so buffeted by events that it feels strangely unsure of itself. An invitation for Matty arrives from Mr. Holbrook, asking her to visit him on his farm. Miss Pole and Mary urge her to accept, and they accompany her on what turns out to be a delightful — and hopeful — day for Matty.

Meanwhile, Dr. Harrison confides in his medical school friend, Jack Marshland, about his love for Sophy. Jack encourages him to send her some Valentine flowers. But Jack, a perpetual prankster, has set up some mischief by sending a Valentine card to Caroline Tomkinson as if from Dr. Harrison, hinting at marriage. Caroline is ecstatic and eagerly awaits Dr. Harrison's proposal.

Matty suffers great disappointment and, in a nostalgic mood one evening, decides to confide in Mary about Mr. Holbrook, and how things were put asunder by a trick played by her younger brother, Peter, who then ran away in disgrace to India and has not been seen since.