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See, Grudge means complaint, and in this phrase, bear Todd no grudge ( If I am not wrong, it's taken from My Lost Dollar, by Stephen Leacock) The narrator wants to say that his friend Major Todd, although owing a dollar to him i.e., to Narrator, has done nothing incorrect because not only Todd but also other friends of narrator also have been owing a dollar to him. So the narrator thinks that if many have borrowed a dollar from him, so why should he complain only against Todd ? And therefore the narrator has used this phrase, and it simply means that there was nothing wrong from Todd's side and he should bear no complaint.
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