“The Magic Wish” in Jack and Jill magazine, June 1958 written by Dorothy Gilman Butters.
I finally found the story but it is in the May 1958 edition of the Jack and Jill magazine not June as the copyright page has listed. page 8 to 16.
A short story about Jeffrey Trimble who wished he was small enough to interact with his toy soldiers and indians.
Cast of Characters
Jeffrey Trimble – Boy who made a wish
Chief Longfoot, Red Arrow, Crooked Head, Captain Jim Dandy – toy soldiers and indians
Aunt Sate – Jeffrey’s Aunt
Doctor Hugo Cuthbert – Peddler and Wish Grantor