In dire financial straits, businessman John Baird considers liquidating the bonds that are held in trust for his little daughter Margery. Failing to comprehend her husband's desperation, Virginia Baird refuses his request and, upon overhearing his lawyer advising him to utilize the bonds without consulting her, she decides to place them in the hands of old friend George Drake. Drake hijacks the securities, however, and their disappearance leads to the break-up of the Bairds' marriage, resulting in Virginia leaving the house. Attempting to console her father, Margery sets out on her pony to bring her mother home. But she is held up on the road by Captain Kidd Jr., who adopts her as his first mate, and the two children take up residence on a grass hut on a nearby island. There, while playing at being pirates, they discover the missing securities. As they are returning to land in a leaky boat, the children are found, much to the delight of their parents. Margery's return with the missing securities reunites the Bairds, and all ends happily.
Over the home of John Baird a pall has fallen. Baird faces financial ruin. Weary and haggard he arrives at his attorney's offices. "Get those securities of Margery's and raise a few thousand on them to tide you over," suggested the attorney. Baird explained his plight to Virginia, his wife, asking for the securities of Margery, their child, but she refused to give them up. Virginia asks Drake to get the securities, and, though reluctant, he consents. Drake has just bought a new auto and asks Virginia to go for a spin with him. A bearing is burned out and the mechanic informs Drake it will take about an hour and a half to fix it. Virginia is hungry, so they go to a roadhouse, not knowing it is a notorious place. Virginia suggests Drake phone Baird of their predicament, but he says it is unnecessary. That evening Baird tells Virginia he knows Drake is almost a member of the family, but others may put a meaning upon the easy companionship between them. Virginia says she is sorry she refused to let him have the securities, which she now offers him. Baird says he will get them from the bank, but she says she sent Drake for them. Baird is furious, saying she confides in Drake and mistrusts her husband, and insists she must think a great deal of Drake. Virginia, dumb with outraged pride, leaves the room. Baird has already received word that, thanks to an unknown friend, they have weathered the storm. Drake has placed the securities on the table of 'his room when Baird arrives and asks for them. Drake goes to his room, only to find them gone, and the butler declares he has no idea who could have taken them. Virginia has, meanwhile, left a note, saying she has gone to her Aunt Sarah's until he regains his reason and begs her forgiveness. Margery comes to him that night. Baird tries to comfort her. The child writes a note to her mother, saying everybody forgives her and loves her very much, so to come right back home again, and signs it, "Your Loving Husband." Margery dresses, leaves the house quietly and rides away on her pony. A voice commands her to halt, and a blunderbuss is pointed at her through the bushes. It is a boy playing that he is Captain Kidd and searching for buried treasure. Margery joins his band and they row across the lake into his cave. Margery and "Captain Kidd" see a man bury something and then hurry away. They dig up what he buried and are disgusted to find only a package of papers, which "Captain Kidd" puts in his pocket. They eat most of their supplies, and terrified by stories the boy reads, Margery finally begins to cry and wants to go home. Meanwhile, the pony has returned home, and Baird is frantic. Searchers find hair ribbon in the lake. Baird goes to tell Virginia. Both forget their own troubles in the new one. Captain Kidd and Margery finally start home in the boat, which begins to leak rapidly. At last there is a happy reunion. Margery shows the papers and declares the butler buried them. Though the butler jumps into the lake to escape, the detectives catch him. Baird receives word that Drake is the friend who has kept him from ruin. Baird shakes hands with Drake, whom Margery hugs and kisses, declaring that when she grows up she is going to be a pirate's wife.
