it on the mountain-side.

There it lay, gold as far as the eye could see, and farther. Jewels,
too, were there, more than twelve waggons could carry away in four
days and nights, each going three journeys.

Indeed, however much you took from this marvellous treasure, never did
it seem to grow less.

But more precious even than the gold or the jewels of the hoard was a
wonderful sword which it possessed. It was named Balmung, and had been
tempered by the Nibelungs in their glowing forges underneath the glad
green earth.

Before the magic strength of Balmung's stroke, the strongest warrior
must fall, nor could his armour save him, however close its links had
been welded by some doughty smith.

As Siegfried rode towards the two little dwarfs, they turned and saw
him, with his bright, fair face, and flowing locks.

Nimble as little hares they darted to his side, and begged that he
would come and divide their treasure. He should have the good sword
Balmung as reward, they cried.

Siegfried dismounted, well pleased to do these ugly little men a
kindness.

But alas! ere long the dwarfs began to mock at the hero with their
harsh voices, and to wag their horrid little heads at him, while they
screamed in a fury that he was not dividing the treasure as they
wished.

Then Siegfried grew angry with the tiny princes, and seizing the magic
sword, he cut off their heads. The twelve foolish giants also he slew,
and thus became himself master of the marvellous hoard as well as of
the good sword Balmung.

Seven hundred valiant champions, hearing the blast of the hero's horn,
now gathered together to defend the country from this strange young
warrior. But he vanquished them all, and forced them to promise that
they would henceforth serve no other lord save him alone. And this
they did, being proud of his great might.

Now tidings of the slaughter of the two tiny princes had reached
Nibelheim, and great was the wrath of the little men and little women
who dwelt in the dark town beneath the earth.

Alberich, the mightiest of all the dwarfs, gathered together his army
of little gnomes to avenge the death of the two dwarf princes and
also, for Alberich was a greedy man, to gain for himself the great
hoard.

[Illustration: Seizing the magic sword, he cut off their heads]

When Siegfried saw Alberich at the head of his army of little men he
laughed aloud, and with a light heart he chased them all into the
great cave on the m