"No," said the Yellow Dwarf, "I've only just appeared. How very strange meeting you here!"

I told him what we were doing, and introduced my young cousin, who was greatly interested and somewhat awe-struck at the extraordinary little personage in the Oriental costume, whose remarkable appearance was causing quite a sensation amongst the bystanders.

"Oh, these rugs," he said, looking at them casually. "No, I don't fancy they are much good for your purpose, they seem to be too—hullo!" he suddenly cried excitedly, "what's that? Good gracious! I really believe it's—Why, yes! I'm sure of it! I recognise it quite well by the pattern. There's not another in the world like it. How could it possibly have got here?"

"What are you talking about?" I asked.

"Why, this carpet," cried Shin Shira, pointing excitedly to a very quaint-looking Oriental rug in the corner of the window. "It's the Magic Carpet which everybody has read about in the Arabian Nights. It enables anybody in whose possession it is to travel anywhere they wish—surely you must have heard about it."

"No!" cried Lionel, his eyes sparkling with eagerness, "not really? Oh, sir! Do—do please buy it—it will be simply ripping! Do! do! Why, it will be better than an aeroplane."

I had never in my life before seen my cousin so excited about anything.

"I should certainly advise you to purchase it," whispered Shin Shira. "It is a very valuable rug, and no doubt you would find it very useful in many ways."

I must confess to a considerable amount of curiosity myself as we entered the shop and asked to be shown the carpet which Shin Shira declared to be endued with such remarkable properties.

It was a very handsome one, and the shopkeeper showed it to us with a considerable amount of pride.