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Santa Claus lives in the Laughing Valley, where stands the big, rambling castle in which his toys are manufactured. His workmen, selected from the ryls, knooks, pixies and fairies, live with him, and every one is as busy as can be from one year's end to another. It is called the Laughing Valley because everything there is happy and gay.

"These are my Ryls," pointing to the little sprites squatting around him. "Their business is to paint the colors of the flowers when they bud and bloom; but I brought the merry fellows along to see Oz, and they've left their paint-pots behind them. Also I brought these crooked Knooks, whom I love.

Claus had no time to notice them, for he was surrounded by a band of harsh-featured Knooks, more crooked and deformed in appearance than any he had ever seen. "Who are you that call on us?" demanded one, in a gruff voice. "The friend of your brothers in Burzee," answered Claus. "I have been brought here by my enemies, the Awgwas, and left to perish miserably.

"They were only one minute late, and they ran swifter than a bird flies to get home before daybreak." Ak stroked his beard thoughtfully a moment, and then sent for the Prince of the Knooks, who rules all his people in Burzee, and also for the Queen of the Fairies and the Prince of the Ryls.

"Well," replied Flossie, "we must first go and ask the Knooks, who are our guardians, for permission; but if they consent, and you can make a sledge and harness, we will gladly assist you." "Then go at once!" cried Claus, eagerly. "I am sure the friendly Knooks will give their consent, and by the time you are back I shall be ready to harness you to my sledge."

The Master turned away and came to his Forest of Burzee, where he called a meeting of the immortals and told them of the defiance of the Awgwas and their purpose to kill Claus within three days. The little folk listened to him quietly. "What shall we do?" asked Ak. "These creatures are of no benefit to the world," said the Prince of the Knooks; "we must destroy them."

So long as the fire burned and Claus sat in his easy chair by the hearth she did not mind the weather. So passed many days and many long evenings. The cupboard was always full, but Claus became weary with having nothing to do more than to feed the fire from the big wood-pile the Knooks had brought him. One evening he picked up a stick of wood and began to cut it with his sharp knife.

He thanked Ozma for her hospitality and wished her many happy returns of the day. Then the Wizard blew a bubble around his chubby little body and smaller bubbles around each of his Ryls and Knooks.

Next came the Ryls, armed with sharp thorns from bramblebushes. Then the Knooks, bearing the spears they used when they were forced to prod their savage beasts into submission. The Fairies, dressed in white gauze with rainbow-hued wings, bore golden wands, and the Wood-nymphs, in their uniforms of oak-leaf green, carried switches from ash trees as weapons.

So people knew fairies in those days, my dear, and loved them, together with all the ryls and knooks and pixies and nymphs and other beings that belong to the hordes of immortals. And a fairy tale was a thing to be wondered at and spoken of in awed whispers; for no one thought of doubting its truth.