chunk: The story opens with a quick overview of Santa's castle in the Laughing Valley. Its focus soon switches to the five Caves of the Daemons in nearby (though unnamed) mountains. These creatures are pagan daemons rather than Christian demons, in that they are not servants of Satan or necessarily evil. Four of the five, the Daemons of Selfishness, Envy, Hatred, and Malice, certainly are bad, but the fifth, the Daemon of Repentance, is a more ambiguous figure.