coward."

"I don't know you," said Ned, as an excuse.

"Well, well, no matter for that. I know you well enough. Would you read
about gnomes and then be so cowardly that you would fear to associate
with them?"

As he finished speaking, he arose, disclosing a doorway in the trunk of
the pine tree behind him.

At that moment, a beautiful dwarf maiden emerged therefrom, and, as if
having heard the conversation, said: "He is no coward, father. See, he
will shake hands with me!"

Ned put out his hand, but drew it back just in time to escape having the
gold ring which the Fairy Queen had given him, slipped off his finger by
the dwarf maiden.

"Selfish mortal," she cried, "'tis nothing but a little gold band. Give
it to me. See, I will exchange this beautiful diamond for it," and she
held out a sparkling stone set in a gold ring.

Ned drew back in alarm, more especially as the dwarf himself advanced
with a threatening attitude.

Continuing to step back, Ned kept his eyes upon the dwarf, who advanced
now with upraised fist. Seeing this, Ned quickly threw off his coat and
picking up a stout stick, prepared to defend himself.

It would have gone ill with him, for the dwarf was surprisingly strong
and agile, had not relief come from an unexpected quarter.

[Illustration: NED THREW OFF HIS COAT.]

The little bluebird had quietly slipped out of Ned's pocket, and flying
up to him, received the gold ring about her neck in accordance with the
command of the Fairy Queen, which Ned remembered suddenly and luckily
in time.

Off flew the bird to the great tall pine and touched it with the magic
ring. In an instant it changed into a giant, who stretched forth one of
his great hands, and catching up the dwarf, hurled him headlong down the
side of the ravine close by.

The dwarf maiden, with a cry, rushed after him, climbing down the sides
with wonderful agility.

The giant now turned to Ned, saying: "Little Master, I owe it to you
that I am once more my natural self. An evil spirit transformed me into
yonder tree, but the magic of your ring has restored me once more to my
natural shape. I will henceforth serve you while the occasion lasts,"
and with these words he knelt before Ned most humbly.

At the same time the bluebird handed Ned his magic ring, and with this
faithful little friend, his gold ring, and the giant for a servant, Ned
felt that he had nothing further to fear while traveling in Gnomeland.

"Thank you, my