Question

in my lost dollar by stephen leacock what does the narrator do when he does not get his dollar back

Answer 1

 Leacock tries to downplay the tension by reducing the amount lent to a meager or let us say a frugal one dollar. Not wanting to make a major issue out of a trivial thing Leacock employs the tool of laughter.
hope it helps !!

Answer 2

by reducing the amount lent he wants to reduce tension.