THEY WANTED TO FIND OUT HOW IT WAS DONE

When the same thing happened the following night, the smith and his wife decided to keep watch. They wanted to find out how it was done.

The mystery was soon cleared up. Towards midnight, the smith, looking through the chinks in the boards of the attic, saw the little dwarf whose hat he had restored to him come in. The little fellow immediately set to work, and worked without a pause till morning. It was splendid to see how quickly he did it, and during this time he did more work than the smith and his assistant could do in half a day.

This went on for some time. The smith sent away his assistant, although his custom had increased, and he earned much money, so that he and his wife and children enjoyed good times, and saved a large sum.

ANOTHER SET OF VERY FINE MATERIAL

The smith and his wife very often watched the dwarf at his work, and they consulted together to see in what way they could reward his kindness. One day his wife said, “I have an idea; didn’t you notice last time that his clothes looked rather shabby? I shall make him another set of very fine material.” This was done. The wife made the dwarf a set of clothes fit for a prince, and in the evening it was folded neatly and placed on a chair in the smithy. The smith and his wife went into the attic to see what would happen.

The dwarf was delighted with the clothes. He unfolded them and examined them one by one, and his smiling face showed how pleased he was. He put the garments on, and when he was dressed, he put on his little red hat decorated with a feather.

He was as proud as a peacock, and greatly pleased with