The tribe is furious. Daisy enters and feigns ignorance of her mock apprenticeship. Fountain is delighted he has finally confessed. Squirrel produces their agreement and, by the letter of the contract, her delight turns to horror when she realizes she must now marry Squirrel instead of David.
Buffalo wants his Medicine Man tortured but Squirrel calls for the penalty clause to be carried out immediately, thus making him Indian Royalty.
Rooster, anxious to punish him, insists that it's entirely possible for Squirrel to acquire magical powers before the day is out so he needn't marry Fountain on the spot. In the mean time, he should be punished for his lies.
Buffalo is enraged. Because of Squirrel, there will be no peace, the tresspassers must be executed, and his high-hopes of having his daughter marry a Cavalry solider are dashed. Squirrel mutters, "Is it my fault I never joined the Cavalry?"
Buffalo does not miss this deus ex machina. He tells Squirrel that if he were to join the Cavalry before marrying his daughter, he (Buffalo) would be so happy he'd over-look his treachery. Squirrel reluctantly agrees.
Everyone is happy, soon even Fountain. As the curtain comes down, the Cavalry soldiers put a uniform on Squirrel in order to mock him. Squirrel is horrified but Fountain falls back in love.
What a wond'rous sensation,
What unbounded elation,
When a manifestation
Will allow one more chance
For a future that's brighter,
With a treaty that's tighter
And we feel so much lighter
That we sing and we dance...
"Tra la la la la la la..."
David:
My sweet, I've much sincerity,
No motives underlie.
No marital temerity,
True love's the reason why.
Daisy:
Our marraige will be very nice
With both our clans allied
And there will be no sacrifice
For I shall be your bride.
All:
And there will be no sacrifice
For she will be your bride.
Oh, happy hour, oh, happy day.
A time of peace is on its way.
An honest truce has come at last
The days of fear are surely past.
Oh, happy, happy, happy day!
