A tailor and a goldsmith were travelling together. One evening, as the sun set behind the mountains, they heard distant music growing clearer. It was strange yet so pleasant that they forgot their weariness and hurried on. By moonlight, they reached a hill where they saw a crowd of little men and women dancing hand in hand with great delight.
Their singing was charming, and this was the music the travellers had heard. Among them sat an old man, taller than the rest, wearing a parti-coloured coat with an iron-grey beard hanging down his chest. The two men stood astonished, watching the dance. The old man gestured for them to join, and the little folk opened their circle. The goldsmith, who had a hump and was brave like many hunchbacks, stepped in. The tailor hesitated at first but, seeing the merriment, gathered his courage and followed. The circle closed, and the dancing and singing continued with wild leaps.
The old man then took a large knife from his girdle, sharpened it, and looked at the strangers. Terrified, they had little time to react. The old man swiftly shaved the heads of both the goldsmith and the tailor. After finishing, he patted their shoulders kindly, as if praising their willingness. He then pointed to a heap of coal and gestured for them to fill their pockets. They obeyed, though puzzled by the coal's purpose, and went to find shelter for the night.
As they entered the valley, the clock of a nearby monastery struck midnight. The music stopped, and instantly, all the little folk vanished, leaving the hill silent in the moonlight.
The travellers found an inn and slept on straw beds, forgetting to empty their pockets of coal. A heavy weight woke them early. Reaching into their pockets, they were amazed to find not coal but pure gold, and their hair and beards had fully regrown.
Now rich, the goldsmith—whose greed had led him to take more coal—was twice as wealthy as the tailor. Still unsatisfied, the goldsmith proposed returning the next night for more treasure. The tailor refused, saying, "I have enough and am content. I will become a master, marry my sweetheart, and live happily." However, he agreed to stay one more day to please his companion.
That evening, the goldsmith hung large bags over his shoulders and returned to the hill. He found the same scene: the little folk dancing and the old man, who again shaved him and gestured for him to take coal. The goldsmith eagerly filled his bags and returned to the inn, dreaming of waking as an enormously rich man.
Upon waking, he hastily checked his pockets but found only black coal. He then checked the gold from the previous night, only to discover it had also turned to coal. Striking his forehead with his sooty hand, he realized his head and beard were bald. Worse, he now had a second hump on his chest, matching the one on his back. He wept, recognizing this as punishment for his greed.
The kind tailor, awakened by the cries, comforted him and promised, "You were my travelling companion; you shall stay with me and share my wealth." He kept his word, but the goldsmith had to bear the two humps and cover his bald head with a cap for the rest of his life.