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. One would think that our good old Santa Claus, who devotes his days to making children happy, would have no enemies on all the earth; and, as a matter of fact, for a long period of time he encountered nothing but love wherever he might go.