he exclaimed, "it's got something alive in it!"

We all turned around to see what she meant, and at once I knew that it
was Shin Shira appearing.

"Oh, jolly!" cried all the children but Lionel, when I explained to them
what was happening.

"It's all very well, and he's good fun and all that," said my young
cousin, "but if you'd had the experience that I had with his old Magic
Carpet, you'd be very careful not to have much to do with him--he's
rather dangerous."

"But think of the adventures you have with him," said Dick enviously. "I
wouldn't funk it if he asked me to go anywhere with him."

"Who's funking it?" demanded Lionel angrily.

"Well, _you_ didn't seem to have much desire to repeat your experiences,
my friend," laughed Shin Shira. "My head and ears just happened to
arrive in time for me to gather that."

Lionel turned very red. "Oh well, sir, I did have rather a rough time on
the Magic Carpet, you know."

"So you did, so you did," agreed Shin Shira, amiably beaming on us all.
"And where may all you young people be off to this fine day?"

"We're having a picnic," said Lady Betty shyly.

"Going to have, you mean," corrected Fidge. "It isn't a picnic till you
begin to eat, you know."

"Would you mind if I joined you?" asked the Yellow Dwarf, appealing to
me.

"Well, it strikes me that you have done so," I laughed; "but we shall be
delighted with your company if you care to stay."

"That's all right then," said Shin Shira, settling down comfortably;
"there's nothing I should like better this warm day," and he took off
his turban and rubbed his little bald head with a yellow silk
handkerchief.

The sight of the jewel in it reminded him to ask me what became of the
two bags of diamonds he left in the basket of the balloon when he
disappeared on our way back to Baghdad.

I told him what had happened, and how I had lost all of mine except the
few almost worthless ones which I had put in my pocket.

"I was rather more fortunate," said Shin Shira, "for amongst those which
I saved were one or two very valuable ones, and several more which I can
sell at a very good price when it becomes necessary."

"But I thought you could have whatever you wished for?" said Dick.

"Oh no," replied the Dwarf, "not money, you know--almost anything else,
but not money, because, you see, it wouldn't be legal to make money, and
I can tell you I have often found it very awkward to have appeared in a
strange place with n