Kidd the pirate buries his treasure in a swamp a few miles from Boston under the Devil's watch. Kidd was soon after hung as a pirate and the Devil soon took guardianship over Kidd's fortune, as he often does with ill-gotten treasure.
In the year 1727, a miserly man by the name of Tom Walker takes an ill-chosen "short cut" home through the swamp. On his journey home, he discovers an Indian skull and soon meets a dark man, as if covered in soot. This man turns out to be the Devil, and he tries making a deal with Tom; he wants his soul in exchange for riches.
After Tom tells his wife about the offer and he decides to decline it, she sets out with all of their household valuables to make her own deal with the devil. Tom returns to the swamp in search of his wife, and discovers that she has met her demise. He decides to accept the offer since his greedy wife is gone, and he sells his soul to the devil.
The Devil follows through with his end of the deal, and Tom becomes very wealthy by greedy acts instructed by the Devil. However, despite all of his riches he is unhappy and begins to regret his deal with the Devil. He starts attending church regularly and being an immaculate Christian; better than some life long church-goers.
Tom Walker hears a knock upon his door one afternoon, and he answers the door,still in his nightgown, leaving his bibles behind at his desk. He opens the door to reveal the Devil and a black horse. He tries to resist but the Devil forces Tom onto the horse and the horse takes Tom to his final destination: Hell.
The swamp is rumored to be haunted by Tom Walker and the black horse. Tom is stuck forever regretting his choices and his deal with the devil.