Some of the first dwarfs to have their histories recorded were employed as court dwarfs. They were owned and traded amongst people of the court, and delivered as gifts to fellow kings and queens.
Visual effect
Court dwarfs were made to stand right next to the king or queen in a royal court during public appearances and ceremonies. Because they were so small, the king appeared much larger and visually enhanced his powerful position. Other than court jesters who were professional entertainers and clowns, court dwarfs were also used as "natural fools" to create amusement due to their unusual bodies. Their appearance also created allusions of mythology and magic like kobolds and wights.
Antiquity
Ancient Egypt, Greece, and Rome
From the earliest historic times dwarfs attracted attention, and there was much competition on the part of kings and the wealthy to obtain dwarfs as attendants. Ancient Egypt saw dwarfs as being people with significant sacred associations, so owning a dwarf gave a person high social stature.
Julia, the niece of Augustus, had a dwarf named Conopas high, and a freed-maid Andromeda who measured the same.
China
Sima Qian wrote of court dwarfs. He wrote about You Zan, a court dwarf under the "First Emperor of Qin" who reigned from 259 to 210 B.C.E. In one passage he described You taking pity on guards standing in the rain outside a banquet. It is said that the emperor overheard You's conversation with them and ordered a changing of the guards so that they could rest inside.
Martin Monestier claims that the Emperor Xuanzong constructed a "Resting Place for Desirable Monsters" where dwarfs were included among the "monsters." Emperor Wu Di, who reigned during the Western Han dynasty, imported numerous dwarfs to act as slaves and jesters. Yang Cheng, a provincial governor, intervened to help them. He told the emperor that little people were his subjects rather than slaves and should be treated as such. Wu Di was moved and released the dwarfs. Yang Cheng was deified and worshipped by some of their families. Yang Cheng's image was worshipped for centuries. The practice of keeping court dwarfs persisted as well.
Chinese emperors were able to import dwarfs via the Silk Road. This practice persisted at least until the Tang dynasty.
Modern era in Europe
As the courts of Europe were constantly competing not only in politics but also in terms of representation, the rulers and nobles tried to command as many dwarfs as possible. Natalya Alexeyevna of Russia, a sister of Tsar Peter the Great, was recorded to have 93 court dwarfs while the Spanish royal court housed 70 dwarfs in the time from 1563 to 1700. People with dwarfism were recruited from all over Europe and were used as a popular gift to other rulers.
While jesters were often only temporarily present at a specific court, dwarfs usually had a permanent function and were registered in the personnel rolls as "court dwarf", "personal dwarf" or "chamber dwarf". This enabled them to play an important role in ceremonial culture and gave them close access to the ruler. This close relationship led to multiple roles beyond the foolish task as a natural clown. Court dwarfs served as a substitute for children or even diplomats. At the end of their career, these privileged dwarfs would usually receive a pension and other benefits. A favourite dwarf of Peter the Great received a state funeral including miniature horses and a "small priest".
France
Richebourg (1756–1846), was only tall. He began life as a servant in the Orleans family. In later years he was their pensioner. He is said to have been put to strange use in the French Revolution—passing in and out of Paris as an infant in a nurse's arms, but with despatches, dangerous to carry, in Richebourg's baby-wrappings. He died in Paris in 1846, at the age of 90.
Great Britain
British tradition has its earliest dwarf mentioned in the old ballad which begins "In Arthur's court Tom Thumb did live"; and on this evidence the prototype of the modern Tom Thumb is alleged to have lived at the court of King Edgar. Of authentic English dwarfs, the first appears to be John Jarvis , who was a page to Queen Mary I. Her brother King Edward VI had his dwarf called Xit.