Notorious counterfeiter "100 Dollar Bill" Bailey has eluded police capture for fifteen years while passing off his signature C-notes. He brazenly passes himself off as Secret Service agent Charles Gilbert to McBride and McTavish and recruits police help in what they think will be a sting operation at the local racetrack to catch Bailey. Actually, Bailey/Gilbert uses the opportunity to exchange his phony bills for the real thing right under Steve's nose. Torchy, with the aid of a furloughed Gahagan and a German shepherd named Blitzen, is able to penetrate the counterfeiting ring.
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