Adventures of the Little Wooden Horse by Ursula Moray Williams
Dashing, proud and brave, Uncle Peder had never made so fine a horse before The little wooden horse loves Uncle Peder like a father and hopes never to leave him. Then the toymaker falls upon hard times, the little wooden horse must go out into the world to seek his fortune. But whether he's working in a coal mine, walking the tightrope in a circus, or gathering pirate treasure, the loyal little horse has only one thought: to return to his beloved master's side. First published in 1938, Adventures of the Little Wooden Horse is a well-loved modern children's classic.