ked 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 AEsir who had such a thought. The AEsir made peace with them, and
they lived together in friendship, and the Vanir came to do things that
helped the AEsir 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 Nioerd,
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.

In the days when neither the AEsir nor the Vanir were friendly to him
Loki used to go down to Svartheim, the Dwarfs' dwelling below the earth.
And now that he was commanded to restore to Sif the beauty of her hair,
Loki thought of help he might get from the Dwarfs.

Down, down, through the winding passages in the earth he went, and he
came at last to where the Dwarfs who were most friendly to him were
working in their forges. All the Dwarfs were master-smiths, and when he
came upon his friends he found them working hammer and tongs, beating
metals into many shapes. He watched them for a while and took note of
the things they were making. One was a spear, so well balanced and made
that it would hit whatever mark it was thrown at no matter how bad the
aim the thrower had. The other was a boat that could sail on any sea,
but that could be folded up so that it would go into one's pocket. The
spear was called Gungnir and the boat was called Skidbladnir.

Loki made himself very agreeable to the Dwarfs, praising their work and
promising them things that only the Dwellers in Asgard could give,
things that the Dwarfs longed to possess. He talked to them till the
little, ugly folk thought that they would come to own Asgard and all
that was in it.

At last Loki said to them, "Have you got a bar of fine gold that you can
hammer into threads--into threads so fine tha