“Indeed you owe me but small thanks,” replied Hans, laughing; “it was really my cat who saved your child, by killing the dragon ere I came up to him.”

But though Hans declared he wanted no payment, the dwarf would take no denial.

“You see this small stone,” he said; “it possesses the power of making whoever holds it in his hand invisible. This sword,” he continued, drawing forth a tiny but exquisitely damascened sword, “is both sharp and strong, and though small enough to carry in your pocket, you have but to express the wish when you need to use it, and it will at once attain its full size and strength. And here,” he added, “is my third gift. It is, as you see, but a tiny little ship, like a child’s toy, so small that you can easily carry it also in your pocket, and yet, whenever you desire, it will become as large as you may need it either to go on a river or across the sea, and it further possesses the property of being able to sail, no matter whether there is any wind or not.”

It was in vain that Hans protested he had in no way earned such valuable gifts. The dwarf insisted; so Hans was fain to take the precious treasures, thanking him most warmly for his great kindness. He then bade him farewell, kissed the pretty child, who clung round his neck, and, taking up his iron crutch, shouldered his cat and departed.

CHAPTER II.

HIS WONDERFUL ADVENTURES, AND HOW HE RETURNED GOOD FOR EVIL.

When Hans got down to the shore again, he drew forth the little ship from his pocket, and, putting it in the water, said—

“Ship, ship, grow larger.”

Immediately the tiny boat expanded, and behold a beautiful vessel lay there at anchor.