Once, a poor woodcutter was cutting a tree near a deep river. Suddenly, his iron axe slipped from his hand and fell into the water. Heartbroken, he sat by the bank and cried because that axe was his only way to earn a living.

A forest spirit appeared and, seeing his distress, dived into the river. She emerged with a golden axe, but the woodcutter said, "No, that is not mine." She dived again and brought out a silver axe, but he again refused, saying his was only made of iron. Finally, she brought up his old, rusty iron axe. The woodcutter shouted with joy, "Yes! This one is mine!".

The spirit was so impressed by his honesty that she gave him all three axes as a reward. A greedy neighbor, hearing the story, went to the river and dropped his axe on purpose. When the spirit showed him a golden axe, he lied and said it was his. The spirit, disgusted by his greed, vanished, and the neighbor lost even his own axe.