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It is such a cute little story about a dollhouse that fell into disorder because it wasn't taken care of, and a doll family living in it. The narrator is a fairy queen who likes the family because they are always so happy and jolly and glad.
The owner of the dollhouse gets another, “better” doll house with new, finer dolls, and she likes this house better, and the old house is in danger of getting burned. (Even though it was her grandmother's and she got it from the queen... oh my!)