Some were ugly, misshapen, and cunning-faced, with great heads, small bodies, long arms and feet. These they called Trolls or Dwarfs or Gnomes, and sent them to live underground, threatening to turn them into stone should they appear in the daytime. And this is why the trolls spend all their time in the hidden parts of the earth, digging for gold and silver and precious stones, and hiding their spoil away in secret holes and corners. Sometimes they blow their tiny fires and set to work to make all kinds of wonderful things from this buried treasure; and that is what they are doing when, if one listens very hard on the mountains and hills of the Northland, a sound of tap-tap-tapping is heard far underneath the ground.
The other small earth creatures were very fair and light and slender, kindly of heart and full of good will. These the gods called Fairies or Elves, and gave to them a charming place called Elfland in which to dwell. Elfland lies between Asgard and Midgard, and since all fairies have wings they can easily flit down to the earth to play with the butterflies, teach the young birds to sing, water the flowers, or dance in the moonlight round a fairy ring.
Last of all, the gods made a man and woman to dwell in fair Midgard; and this is the manner of their creation.
All-Father Odin was walking with his brothers in Midgard where, by the seashore, they found growing two trees, an ash and an elm. Odin took these trees and breathed on them, whereupon a wonderful transformation took place. Where the trees had stood, there were a living man and woman, but they were stupid, pale, and speechless, until Hœnir, the god of Light, touched their foreheads and gave them sense and wisdom; and Loki, the Fire-god, smoothed their faces, giving them bright color and warm blood, and the power to speak and see and hear.
It only remained that they should be named, and they were called Ask and Embla, the names of the trees from which they had been formed. From these two people sprang all the race of men which lives upon this earth.
And now All-Father Odin completed his work by planting the Tree of Life.
This immense tree had its roots in Asgard and Midgard and the Mist Land; and it grew to such a marvellous height that the highest bough, the Bough of Peace, hung over the Hall of Odin on the heights of Asgard; and the other branches overshadowed both Midgard and the Mist Land. On the top of the Peace Bough was perched a mighty eagle, and ever a falcon sat between his eyes, and kept watch on all that happened in the world below, that he might tell to Odin what he saw.
Heidrun, the goat of Odin, who supplied the heavenly mead, browsed on the leaves of this wonderful tree, and from them fed also the four mighty stags from whose horns honey-dew dropped on to the earth beneath and supplied water for all the rivers of Midgard.
The leaves of the Tree of Life were ever green and fair, despite the dragon which, aided by countless serpents, gnawed perpetually at its roots, in order that they might kill the Tree of Life and thus bring about the destruction of the gods.
Up and down the branches of the tree scampered the squirrel, Ratatosk, a malicious little creature, whose one amusement it was to make mischief by repeating to the eagle the rude remarks of the dragon, and to the dragon those of the eagle, in the hope that one day he might see them in actual conflict.