CotD: From the old Van Beuren Studios comes “The Sunshine Makers” a gem of an gnome tale directed by Ted Eshbaugh.
The Sunshine Makers (1935) — Rainbow Parade Theatrical Cartoon Series
This is the story of a community of happy, identical little gnomes who have the ability to distill sunshine into a bottled elixir. Anyone consuming this liquid immediately begins singing and capering about in perfect happiness (despite the obviously radioactive nature of the stuff; it causes an x-ray effect on anyone who drinks it or bathes in it).
In a gloomy forest nearby lives a bunch of misery-loving goblins who only feel good when they feel bad. Seeing the sunshine gnomes as a threat to their way of life, they mount a lame attack on the gnome village. The gnomes fight back by bombarding the goblins with bottles of the sunshine elixir. Soon, the goblins are thoroughly assimilated and everyone is happy.
Watch “The Sunshine Makers” on video at Big Cartoon DataBase