The little friends threw their arms about each other, and were so full of their own feelings that they never saw Uncle Fact's tall shadow flit across them, as he stole away over the soft sand. Poor old gentleman! he was in a sad state of mind, and didn't know what to do; for in all his long life he had never been so puzzled before. "A mermaid indeed!" he muttered. "I always thought that child was a fool, and now I'm sure of it. She thinks she is a mermaid, and has made Fancy believe it. I've told my wife a dozen times that she let Fancy read too many fairy tales and wonder-books. Her head is full of nonsense, and she is just ready to believe any ridiculous story that is told her. Now, what on earth shall I do? If I put Luly in an asylum, Fancy will break her heart, and very likely they will both run away. If I leave them together, Luly will soon make Fancy as crazy as she is herself, and I shall be mortified by having a niece who insists that her playmate is a mermaid. Bless my soul! how absurd it all is!" Aunt Fiction had gone to town to see her publishers about a novel she had written, and he didn't like to tell the queer story to any one else; so Uncle Fact thought it over, and decided to settle the matter at once. When the children came in, he sent Fancy to wait for him in the library, while he talked alone with Lorelei. He did his best; but he could do nothing with her,--she danced and laughed, and told the same tale as before, till the old gentleman confessed that he had heard their talk on the rocks: then she grew very sad, and owned that she _was_ a mermaid. This made him angry, and he wouldn't believe it for an instant; but told her it was impossible, and she must say something else. Lorelei could say nothing else, and wept bitterly when he would not listen; so he locked her up and went to Fancy, who felt as if something dreadful was going to happen when she saw his face. He told her all he knew, and insisted that Lorelei was foolish or naughty to persist in such a ridiculous story. "But, uncle, I really did make a mermaid; and she really did come alive, for I saw the figure float away, and then Lorelei appeared," said Fancy, very earnestly. "It's very likely you made a figure, and called it a mermaid: it would be just the sort of thing you'd do," said her uncle. "But it is impossible that any coming alive took place, and I won't hear any such nonsense. You didn't see this girl come out of the water; for she says you never looked up, till she touched you. She was a real child, who came over the beach from somewhere; and you fancied she looked like your figure, and believed the silly tale she told you. It is my belief that she is a sly, bad child; and the sooner she is sent away the better for you." Uncle Fact was so angry and talked so loud, that Fancy felt frightened and bewildered; and began to think he might be right about the mermaid part, though she hated to give up the little romance.