The government tries to buy the Black Hills, but they won't meet the Indians' price. So they order all Sioux to confine themselves to their reservation, promising to attack any who stay out. Sitting Bull refuses to come in. Broke in New York, Custer agrees to go on the lecture circuit. With Custer's help, James Gordon Bennett and the Democrats reveal that Grant's brother Orville and Secretary of War Belknap have been selling Army traderships for private graft. At Bennett's suggestion, to make some money Custer buys railroad stock on margin. There is a margin call, and Custer is ruined.

The Black Hills expedition finds gold. Custer and the press send the word back to the world. Custer's Galaxy Magazine articles are published as a book. And August Belmont starts him thinking about running for president.

Custer has his first skirmishes with Sitting Bull. Although Custer holds the Sioux off and the railroad survey is completed, the Panic of '73 shuts the Northern Pacific down. Custer is assigned to Fort Lincoln in Dakota Territory. Custer thinks it's pointless, since the Northern Pacific is dead for the moment. But Sheridan explains: there are rumors of gold in the Black Hills. The Hills are on the Sioux Reservation, and the army is supposed to keep whites out of them. Sheridan sends Custer to build a post within the Hills - ostensibly to keep miners out, but in fact to bring them in, along with the press, to tout the gold in the Hills and revive the fortunes of the Northern Pacific.

After Custer's sister's wedding, Custer and Libbie reunite. The 7th Cavalry is sent to guard Northern Pacific surveyors in Sioux country, what is now the Dakotas, Wyoming and Montana, and Libbie goes along.

Custer goes to Kentucky and is bored to tears. But Sheridan calls him to Chicago to deal with the great fire, and sends him out with a Russian grand duke on a hunting expedition. When the duke's party continues to New Orleans, an angry Libbie joins Custer in Louisville.