Derby’s clever and foolish literary tale is destined to become a classic. Two lazy farmhands, Wilhelm and Janski, are convinced that the mysterious and sinister-looking peddler is carrying Farmer Kohl’s stolen horse in the pack on his back. While the peddler rests beneath a tree, Janski keeps watch and Wilhelm summons the magistrate and a dozen farmers who arrive with hoes and pitchforks. They laugh at Wilhelm and Janski’s foolish notion as the pack is much too small to hold a horse. Wilhelm protests that the horse is “scrunched up” and demands the peddler open his sack. But alas, all that’s revealed is the peddler’s wares. With red faces, Wilhelm and Janski return to their chores while the farmers buy from the peddler. After the last farmer departs, the peddler turns to his sack and opens it wide, revealing that Wilhelm and Janski were not fools at all. Rayevsky creates brilliantly designed mixed-media collages featuring floral shirts that appear on several of the characters, bold black outlines tracing the clothing of each, and quaint villages set in golden landscapes. The blend of words and illustrations make this a not-to-be-missed offering. (Picture book. 5-8)