Can’t think of the name of an 80s or 90s movie watched as a kid.?

I have been trying to find the name of a movie I watched when I was a kid, so I watched it in the early 90s. I don’t know if it was an American movie or an European movies. 

The plot of the movie is about a boy in a mountain region during the 1800s accidentally cause a little boy to be crippled. I think the little boy’s name is Danny. The main character does this because he was being a bully to the little boy after getting in an argument with the little boy’s sister. The main character, MC, takes Danny’s puppy and holds it over a cliff to be mean and accidentally drops the puppy on a lower ridge. Danny tries to rescue the puppy and slips which results in him hurting both his legs. The MC spends the rest of the movie feelings guilty about what happened. The sister is furious with the MC for most of the movie. The MC starts learning how to wood carved and meets an old man who teaches him how to carve better. It is implied that the old man is a former thief. In the middle of the movie the old man meets his brother who is a doctor or police officer. One of the MC carvings is used to win a contest. Not sure if the contest provides money or the old man give the money to the MC but the money the MC gets is used for a surgery for Danny that allows him to walk again. The ending scene is the MC waiting at the train station and sees Danny jump from the platform in joy. 

Anyone that took time to read this does remember I would appreciate if you let me know. It has been bothering me.