Sentence:  “[…] This is Mr. Churchill, who, as you are aware, is good enough to come to us for his diaconate, and, as we hope, for much longer; and being a gentleman of independent means, he declines to take any payment.” Saying this Walden rubbed his hands together and <WSD>smiled</WSD> contentedly. 
Meaning of the word marked with <WSD> tags:  To have (a smile) on one's face.