But they had not come to the mountain-side to mourn for their royal father.  Not so indeed had they come, but to divide the great hoard of treasure which the King had bequeathed to them at his death.

Already they had begun to quarrel over the treasure, and the twelve foolish giants looked on, but did not know what to say or do, so they did nothing, and never spoke at all.

The dwarfs had themselves carried the hoard out of the cave where usually it was hidden, and they had spread 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 wagons could carry away in four days and nights, each going three journeys.

Indeed, however much you took from this marvelous 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 armor 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 marvelous hoard as well as of the good sword Balmung.

Seven hundred valiant champions, hearing the blast of the hero’s horn, now gather 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.

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 mountain-side.