Sif covered her head with her veil, for she would not have the Gods and Goddesses look upon her shorn head. But from the anger in Thor's eyes all saw that the wrong done to Sif was great indeed. Then Thor told of the cutting of her beautiful hair. A whisper went round the Council House. "It was Loki did this—no one else in Asgard would have done a deed so shameful," one said to the other.
"Loki it was who did it," said Thor. "He has hidden himself, but I shall find him and I will slay him."
"Nay, not so, Thor," said Odin, the Father of the Gods. "Nay, no Dweller in Asgard may slay another. I shall summon Loki to come before us here. It is for you to make him (and remember that Loki is cunning and able to do many things) bring back to Sif the beauty of her golden hair."
Then the call of Odin, the call that all in Asgard have to harken to, went through the City of the Gods. Loki heard it, and he had to come from his hiding-place and enter the house where the Gods held their Council. And when he looked on Thor and saw the rage that was in his eyes, and when he looked on Odin and saw the sternness in the face of the Father of the Gods, he knew that he would have to make amends for the shameful wrong he had done to Sif.
Said Odin, "There is a thing that you, Loki, have to do: Restore to Sif the beauty of her hair."
Loki looked at Odin, Loki looked at Thor, and he saw that what was said would have to be done. His quick mind searched to find a way of restoring to Sif the beauty of her golden hair.
"I shall do as you command, Odin All-Father," he said.
But before we tell you of what Loki did to restore the beauty of Sif's golden hair, we must tell you of the other beings besides the Gods and the Goddesses who were in the world at the time. First, there was the Vanir. When the Gods who were called the Æsir came to the mountain on which they built Asgard, they found other beings there. These were not wicked and ugly like the Giants; they were beautiful and friendly; the Vanir they were named.
Although they were beautiful and friendly the Vanir had no thought of making the world more beautiful or more happy. In that way they differed from the Æsir who had such a thought. The Æsir made peace with them, and they lived together in friendship, and the Vanir came to do things that helped the Æsir to make the world more beautiful and more happy. Freya, whom the Giant wanted to take away with the Sun and the Moon as a reward for the building of the wall round Asgard, was of the Vanir. The other beings of the Vanir were Frey, who was the brother of Freya, and Niörd, who was their father.
On the earth below there were other beings—the dainty Elves, who danced and fluttered about, attending to the trees and flowers and grasses. The Vanir were permitted to rule over the Elves. Then below the earth, in caves and hollows, there was another race, the Dwarfs or Gnomes, little, twisted creatures, who were both wicked and ugly, but who were the best craftsmen in the world.