When Claus came the Valley was empty save for the grass, the brook, the wildflowers, the bees and the butterflies. If he would make his home here and live after the fashion of men he must have a house. This puzzled him at first, but while he stood smiling in the sunshine he suddenly found beside him old Nelko, the servant of the Master Woodsman. Nelko bore an ax, strong and broad, with blade that gleamed like burnished silver. This he placed in the young man's hand, then disappeared without a word.  
Claus understood, and turning to the Forest's edge he selected a number of fallen tree-trunks, which he began to clear of their dead branches. He would not cut into a living tree. His life among the nymphs who guarded the Forest had taught him that a live tree is sacred, being a created thing endowed with feeling. But with the dead and fallen trees it was different. They had fulfilled their destiny, as active members of the Forest community, and now it was fitting that their remains should minister to the needs of man.
 
The ax bit deep into the logs at every stroke. It seemed to have a force of its own, and Claus had but to swing and guide it.
 
When shadows began creeping over the green hills to lie in the Valley overnight, the young man had chopped many logs into equal lengths and proper shapes for building a house such as he had seen the poorer classes of men inhabit. Then, resolving to await another day before he tried to fit the logs together, Claus ate some of the sweet roots he well knew how to find, drank deeply from the laughing brook, and lay down to sleep on the grass, first seeking a spot where no flowers grew, lest the weight of his body should crush them.
 
And while he slumbered and breathed in the perfume of the wondrous Valley the Spirit of Happiness crept into his heart and drove out all terror and care and misgivings. Never more would the face of Claus be clouded with anxieties; never more would the trials of life weigh him down as with a burden. The Laughing Valley had claimed him for its own.
 
Would that we all might live in that delightful place!—but then, maybe, it would become overcrowded. For ages it had awaited a tenant. Was it chance that led young Claus to make his home in this happy vale? Or may we guess that his thoughtful friends, the immortals, had directed his steps when he wandered away from Burzee to seek a home in the great world?
 
Certain it is that while the moon peered over the hilltop and flooded with its soft beams the body of the sleeping stranger, the Laughing Valley was filled with the queer, crooked shapes of the friendly Knooks. These people spoke no words, but worked with skill and swiftness. The logs Claus had trimmed with his bright ax were carried to a spot beside the brook and fitted one upon another, and during the night a strong and roomy dwelling was built.
 
The birds came sweeping into the Valley at daybreak, and their songs, so seldom heard in the deep wood, aroused the stranger. He rubbed the web of sleep from his eyelids and looked around. The house met his gaze.
 
"I must thank the Knooks for this," said he, gratefully. Then he walked to his dwelling and entered at the doorway. A large room faced him, having a fireplace at the end and a table and bench in the middle. Beside the fireplace was a cupboard. Another doorway was beyond. Claus entered here, also, and saw a smaller room with a bed against the wall and a stool set near a small stand. On the bed were many layers of dried moss brought from the Forest.
 
"Indeed, it is a palace!" exclaimed the smiling Claus. "I must thank the good Knooks again, for their knowledge of man's needs as well as for their labors in my behalf."
 
He left his new home with a glad feeling that he was not quite alone in the world, although he had chosen to abandon his Forest life. Friendships are not easily broken, and the immortals are everywhere.
 
Upon reaching the brook he drank of the pure water, and then sat down on the bank to laugh at the mischievous gambols of the ripples as they pushed one another against rocks or crowded desperately to see which should first reach the turn beyond. And as they raced away he listened to the song they sang:
 
"Rushing, pushing, on we go!
Not a wave may gently flow—
     All are too excited.
     Ev'ry drop, delighted,
Turns to spray in merry play
As we tumble on our way!"
 
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