"Yet why were you frightened at seeing it?" he asked. "It is only a toy to play with!"

"It's bad!" said Mayrie, decidedly, "an'--an'--just horrid, an' not a bit nice, like tats!"

"Perhaps you are right," returned Claus, thoughtfully. "But if you will return with me to the house I will soon make you a pretty cat."

So they timidly entered the house again, having faith in their friend's words; and afterward they had the joy of watching Claus carve out a cat from a bit of wood and paint it in natural colors. It did not take him long to do this, for he had become skillful with his knife by this time, and Mayrie loved her toy the more dearly because she had seen it made.

After his little visitors had trotted away on their journey homeward Claus sat long in deep thought. And he then decided that such fierce creatures as his friend the lioness would never do as models from which to fashion his toys.

"There must be nothing to frighten the dear babies," he reflected; "and while I know Shiegra well, and am not afraid of her, it is but natural that children should look upon her image with terror. Hereafter I will choose such mild-mannered animals as squirrels and rabbits and deer and lambkins from which to carve my toys, for then the little ones will love rather than fear them."

He began his work that very day, and before bedtime had made a wooden rabbit and a lamb. They were not quite so lifelike as the cats had been, because they were formed from memory, while Blinkie had sat very still for Claus to look at while he worked.

But the new toys pleased the children nevertheless, and the fame of Claus' playthings quickly spread to every cottage on plain and in village. He always carried his gifts to the sick or crippled children, but those who were strong enough walked to the house in the Valley to ask for them, so a little path was soon worn from the plain to the door of the toy-maker's cottage.

First came the children who had been playmates of Claus, before he began to make toys. These, you may be sure, were well supplied. Then children who lived farther away heard of the wonderful images and made journeys to the Valley to secure them. All little ones were welcome, and never a one went away empty-handed.

This demand for his handiwork kept Claus busily occupied, but he was quite happy in knowing the pleasure he gave to so many of the dear children. His friends the immortals were pleased with his success and supported him bravely.

The Knooks selected for him clear pieces of soft wood, that his knife might not be blunted in cutting them; the Ryls kept him supplied with paints of all colors and brushes fashioned from the tips of timothy grasses; the Fairies discovered that the workman needed saws and chisels and hammers and nails, as well as knives, and brought him a goodly array of such tools.

Claus soon turned his living room into a most wonderful workshop. He built a bench before the window, and arranged his tools and paints so that he could reach everything as he sat on his stool. And as he finished toy after toy to delight the hearts of little children he found himself growing so gay and happy that he could not refrain from singing and laughing and whistling all the day long.

"It's because I live in the Laughing Valley, where everything else laughs!" said Claus.

But that was not the reason.

5. How Bessie Blithesome Came to the Laughing Valley

One day, as Claus sat before his door to enjoy the sunshine while he busily carved the head and horns of a toy deer, he looked up and discovered a glittering cavalcade of horsemen approaching through the Valley.

When they drew nearer he saw that the band consisted of a score of men-at-arms, clad in bright armor and bearing in their hands spears and battle-axes. In front of these rode little Bessie Blithesome, the pretty daughter of that proud Lord of Lerd who had once driven Claus from his palace. Her palfrey was pure white, its bridle was covered with glittering gems, and its saddle draped with cloth of gold, richly broidered.

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