- “Out with the old, grumpy James and in with the new, happy one. Happy New Year!”
- ―James' New Year's resolution
New Year Cheer! is a magazine story.
James is jealous because the Fat Controller has given Christmas presents to his driver, fireman, and guard. He is so busy sulking that he forgets to be careful on the icy rails and skids down Gordon's Hill and smashes into a little shed. James is not hurt but is badly bruised. The Fat Controller sends him to the works for repairs, and James agrees that a new coat of paint is the best present of all. He then makes a New Year's resolution to not be grumpy.
- When it was republished in 2015, the exclamation point was dropped from the title.