tood the nature of
old Agga-Groo better than the mermaids did. So he went close to the
goldsmith, and feeling in the pockets of his coat drew out a silver
compass shaped like a watch. "I'll give you this if you'll make the
queen the golden sword," he said.

Agga-Groo looked at the compass with interest and tested its power
of pointing north. Then he shook his head and handed it back to
Cap'n Bill. The sailor dived into his pocket again and pulled out a
pair of scissors, which he placed beside the compass on the palm of
his big hand. "You may have them both," he said.

Agga-Groo hesitated, for he wanted the scissors badly, but finally
he shook his head again. Cap'n Bill added a piece of cord, an iron
thimble, some fishhooks, four buttons and a safety pin, but still
the goldsmith would not be tempted. So with a sigh the sailor
brought out his fine, big jackknife, and at sight of this
Agga-Groo's eyes began to sparkle. Steel was not to be had at the
bottom of the sea, although gold was so plentiful. "All right,
friend," he said. "Give me that lot of trinkets and I'll make you a
pretty gold sword. But it won't be any good except to look at, for
our gold is so pure that it is very soft."

"Never mind that," replied Cap'n Bill. "All we want is the sword."

The goldsmith set to work at once, and so skillful was he that in a
few minutes he had forged a fine sword of yellow gold with an
ornamental handle. The shape was graceful and the blade keen and
slender. It was evident to them all that the golden sword would not
stand hard use, for the edge of the blade would nick and curl like
lead, but the queen was delighted with the prize and took it eagerly
in her hand.

Just then Sacho returned to say that they must go back to their
rooms, and after thanking the goldsmith, who was so busy examining
his newly acquired treasure that he made no response, they joyfully
followed the boy back to the Rose Chamber. Sacho told them that he
had just come from Zog, who was still wasting time in plotting
vengeance. "You must be careful," he advised them, "for my cruel
master intends to stop you from living, and he may succeed. Don't be
unhappy, but be careful. Zog is angry because you escaped his
Yell-Maker and the falling stones and the hot water. While he is
angry he is wasting time, but that will not help you. Take care not
to waste any time yourselves."

"Do you know what Zog intends to do to us next?" asked Princess
Clia.

"No," s