Emily brings in a bunch of tangled cottony plant. it is Old Man's Beard. Why is it Old Man's Beard? Bagpuss tells them the story of the king who had a marvellously silver beard which would make rich carpets, and of the other old men who wanted to sell their beards to the carpet-makers, so they cut them off and washed them and hung them in the hedges to dry, but none of them were as silvery as a truly royal beard. Madeleine sings the song of the master-weaver, and Charliemouse is fascinated by the art of weaving and demonstrates it to Bagpuss by himself being the shuttle.
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