Nanny recovers enough to come home with Diamond, and he takes her education very seriously. He teaches her how to take care of the baby and how to read, just in time for Diamond’s mother to become pregnant again. However, Mr. Raymond’s horse Ruby becomes lame and cannot work as much as originally promised. An economic depression hits London, and poor weather causes the price of bread to increase. Three months pass, and Mr. Raymond does not return to collect his horse and find a place for Nanny. Diamond’s mother gives birth to a baby girl, and Diamond sings her new songs he makes up specifically for her. Diamond moves into Nanny’s room so that Nanny can be closer to his mother and help more with the baby. Times get very lean, but the family sticks together. Spring arrives and Mr. Raymond has not yet returned. 

Spring brings poor weather with it. The family continues to struggle financially. One morning, Diamond awakes and realizes that the North Wind is calling to him, but he cannot see her. He follows her guidance and arrives at the stables, where a boost of wind helps him reach the key to unlock the door.