This is cute — I'm fond of "Honest Axe" references.
(The original usually has a sequel where a scheming fellow finds out about the woodcutter's new gold axe, so goes and dumps his axe in the same spring/pool — the god/fairy/whatever gives the options, but the guy is greedy (and presumably didn't get the whole story) so claims the gold one — and the god says "Liar!" and he loses it all.)