but the dragon gloated upon the hoard and lay coiled upon it , and the fame of that great treasure of golden vessels and of unwrought gold that lay by the caves above the stream fared far and wide about ; yet the great worm slept before it , and evil thoughts he had as he pondered the planting of his cunning lies and the sprouting thereof and their growth and fruit , and fumes of smoke went up from his nostrils as he slept .