nome continued their journey down the valley, following the
crystal stream, in whose waters he had just a short time before seen his
distorted figure, until they came to a beautiful waterfall, down whose
silvery sheen slid numerous water sprites and water fairies.

"Over yonder," exclaimed the Gnome, "lives the Fairy of the Lake. She
brews a magic liquid from checkerberries, which, I am told, if you but
drink a thimbleful, will enable you to regain your natural shape. There
she goes now, over the bridge, on some such errand I dare say."

Ned watched the fairy stepping across the silver network which hung
above a miniature Niagara that he could easily have spanned with a
single step. Catching up a handful of berries he followed her, not
heeding the Gnome's remark "that she would probably prefer to pick them
herself," and, almost treading on some of the fairies who were blowing
about in the long grass like the flowers they represented, threw the
berries in a heap at the door of her castle.

It was, indeed, a most beautiful little palace. Made of brilliant
crystals, it sparkled in the sun like a rainbow. Inside, it was even
more exquisite, for all her little subjects, the flower fairies and the
woodland fays, had adorned it with many lovely things.

Ned stooped over and peeped in at the doorway. There was a bright light
inside which came from a little star suspended from the ceiling, the
crystal walls on all sides reflecting the light with great brilliancy.
Here and there were draped beautiful laces, no doubt spun by the spiders
kept by the fairies for that purpose.

"Come," said the Gnome somewhat impatiently, as Ned's curiosity still
held him at the little castle's doorway. "Come away, or else the Queen
will not return. How is she to enter if you block up her entrance?"

Following his advice, Ned withdrew some little distance and stood
watching the gay scene around him.

Hundreds of insects were flying about and large, gay-winged butterflies
fluttered over the flowers. On some he noticed tiny figures and others
with blades of grass tied around the necks of robins, bluebirds and
golden orioles were also flying about in mid-air, while some sailed on
the silver backs of fishes or floated in shells upon the water near his
feet.

"Look!" cried the Gnome suddenly, "here she comes."

A half horsechestnut, with damask roseleaf cushions, mounted on four
ivy-berry wheels and with four shining beetles for horses came drivi