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When Mama asks for Stacey's coat to shorten the sleeves, he has to admit that he has lent it to TJ until he grows into it. TJ was making fun of him, calling him preacher because of the way the coat fit. Mama wants him to get it back, but Uncle Hammer tells Stacey that if he is stupid enough to give his coat away, then TJ can keep it permanently; Stacey will not survive in the world if he lets people take things from him. Uncle Hammer is using some tough love to teach Stacey a lesson. Stacey has to stop caring what other people like TJ think of him and learn to be his own man.
Uncle Hammer is not being mean to Stacey; he just wants to make sure that Stacey understands his lesson.