Napoleon is negotiating the sale of a pile of timber to help pay for grain that will get the animals on the farm through the winter. He is going back and forth between two farmers, Mr. Frederick and Mr. Pilkerton. The animals prefer dealing with Pilkerton to Frederick, but in the end, Napoleon agrees to sell the wood to Mr. Frederick, who agrees to pay twelve pounds (British currency) more for the timber. However, after Mr. Frederick hauls all the wood away, Napoleon discovers that the bank-notes are forgeries. Mr. Frederick has taken all the lumber in exchange for nothing but worthless paper. (You can find the exact quote in Chapter 8 of the text, almost half-way through. Page 106 of the Signet edition)
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