The people of the city of Wasau believe that a suit of armor they call the Iron Chancellor is their protector, so they give the best of their seed as a tribute to him while the lowly peasants, who depend on a good harvest to live, suffer from hunger. When the town's landlord demands his yearly land rental, the people cannot pay it (because of their tribute) and lose their property. Suddenly, the Iron Chancellor appears, having supposedly killed the baron, and demands more tribute and kidnaps Lili, until the Heap intervenes and the townspeople discover a strange secret.