"I shall have to kill him," said Mime to himself. And at the bare thought his teeth chattered with fear. "But even if I had a sword stout enough and long enough to reach his heart, I should never have courage enough to wield it."

This thought was very discouraging to him, yet he was unwilling to give up hope of the Gold. For many more days he pondered and plotted, till at last he thought of a plan.

"I have it!" he exclaimed slapping his thigh. "I shall build a blacksmith's forge hard by here in the wood, where I shall make nothing but swords. At last my skill will bring forth the best blade in the world, and I shall offer it to the mightiest hero who may come riding by. Who knows? Perhaps one will be found brave enough to fight the dragon, when I tell him just how to do it. Then after he kills the dragon—we will see!"

He chuckled at the cunning plan he had made, while the evil light in his eyes boded no good for the after fate of the chosen hero.

This plan seemed wild, yet it was the best that offered, so Mime began at once. He built his smithy, and having been used to this trade all his life in the under-world, he speedily felt quite at home. Soon his forge-fires shone brightly through the forest, and the sound of his hammering disturbed the birds and beasts.

One day during a lull in his work he heard a faint tap at his door. He asked harshly who was there, but receiving no reply he peered cautiously outside. There on the threshold lay a poor woman feebly holding a little child in her arms. Her strength seemed spent, and even the rough Mime felt pity for her distress. He carried her into the smithy and laid her near the forge-fire, then hastened to pour some cordial down her throat. The drink revived her slightly and she sat up and tried to lift the child.

"Take care of him," she gasped. "His name is Siegfried. He comes from a race of heroes."

"How am I to know that he is of hero born?" asked the dwarf bluntly.

"Here, here!" she answered eagerly, drawing some fragments of a sword from the folds of her dress. "It was his father's sword—the wonderful Sword of Need. Keep it safe for him and he shall do—mighty—deeds——"

Her voice trailed into silence, and the dwarf bending down perceived that she was dead.