Billy Bunny and the Mermaid by David Cory — Read

Well, now we'll commence by saying that as soon as Billy Bunny and Uncle Lucky reached the coral island, where the lovely mermaid lived, for she had asked them to call, you remember, they got off the Whale, and, after asking him to wait for them while they made a little visit, sat down on the sand, and pretty soon the mermaid brought them each a lovely coral scarfpin, and the one she gave to Uncle Lucky was a little image of herself and the one she gave to Billy Bunny was a little fish.

Then the little rabbit opened his knapsack and took out a lovely apple pie and gave it to her. And she was so pleased that she ate it all up, and then she said, "I'll give you a lovely breast-pin made of beautiful coral for your mother, Mr. Billy Bunny, if you'll give me another pie."