The Story of
Mulah Goldman
by Thomas Porter, March 1971

"Once upon a time there was an ambitious goldsmith named Mulah Goldman. He was a great artist in making beautiful gold articles and many of his customers were very wealthy. He kept his gold in a safe and sometimes he kept valuables for his customers in his safe, for which they paid him.

One day as Mulah turned to finish sweeping his shop after closing for the day, he was frightened by a ruddy complected man with unusual features and dress. "What do you want and who are you?" Mulah asked.

"Some people call me Satan, some the devil, but my friends call me Lucifer, which means "the Light." You may call me Lucifer as I have come as a friend to teach and show you the way to wealth and power.." the stranger said. "I will give you everything you want. But I need your help In return. "

"What can you give me and what do you want from me?" asked Mulah. Lucifer showed Mulah a vision and said, "This is you only one year from now if you accept my offer. All that I ask is that you do exactly as I tell you in ways of business and public matters. I have great ambition but I am powerless except through someone like you. What you see is only the beginning of what I shall give you."

Mulah sat down in shock and disbelief, but soon regained his wits, and answered, "How do I know you will keep your word?"

"Try me," Lucifer replied. "I will send a customer to you tomorrow with a very profitable offer. Take it." Without waiting for a reply Lucifer vanished through the floor.

The next day one of Mulah's wealthiest customers, a merchant named Omar Trader said to Mulah, "There is much theft recently and I am worried about the safety of my gold. Will you store my 10,000 rubles for me?"

Mulah hesitated, saying, "It is a very big responsibility." Omar was insistant, so Mlulah said he would store the gold for one ruble a year for each twenty stored. Omar agreed and had his gold brought to Mulah. Mulah then gave Omar a warehouse receipt for his gold. His small safe was now so full he had no room for his own valuables. But imagine, 500 rubles a year just for storing one customer's gold. Half as much as he usually earned working all year at his trade!

That night Lucifer returned and said, "Do not worry. Take your first year's income for the storage to build a stronger, bigger safe." The next day Mulah began work on his new safe. This caused much curiosity among those passing by. Several of his friends asked why he needed such a big safe and Mulah showed them how full his old one was. Soon the word spread that Mulah had much gold. One day one of his old customers asked Mulah if he could borrow 3,000 rubles, saying he could invest it very profitably and would pay one ruble a year for each ten borrowed. Mulah said gold was very scarce and he would have to think about it.

That night, when Lucifer came, Mulah expressed great doubt that it was wise to loan so much of Omar's gold. But Lucifer said, "Do not worry about Omar. He will leave most of his gold for several years." When his customer returned Mulah asked what he could pledge as security for so much gold. His customer offered his entire business. Mulah knew it was worth much more than the loan, but said, "That is not enough. You must pledge all that you own." His customer complained, but finally agreed and said, "I have no safe place to store so much gold, so keep it here. Give me a warehouse deposite receipt that I can give my seller and you can give him the gold when he returns the receipt."

Mulah waited for his customer's seller to call for his gold, but many moons passed and still the seller did not call. And now the customer he loaned to was repaying in gold and Mulah would soon have back even what he had spent to build his new safe! Mulah mentioned this strange situation to Lucifer. "No one wants gold for business transactions because it is inconvenient to carry and store. They much prefer the receipts. The gold only defines the value," Lucifer explained.

Many merchants were anxious to borrow gold, and Mulah loaned more, soon having loaned much more than Omar left with him. Very few ever took the gold. Occasionally they asked to see their gold and were then satisfied. Instead of taking their gold out they often paid back in gold!

But Omar began to hear of Mulah's loans and began to wonder if Mulah was loaning his gold. He went to Mulah and asked to see his gold. Mulah showed it to him, and showed him he had still much more. Omar wondered where it came from, but never found out.

Meanwhile business prospered in the land as it never had before, for now there were many more of Mulah's gold receipts to trade with than there had ever been of gold. Borrowers could repay their loans with gold or with receipts they had earned from others.

Then Lucifer said to Mulah, "The people cannot easily divide their gold receipts into the proper proportions to buy what they want and sometimes the theft of the transferable receipts is a problem. It is time to offer your customers a new service. Call it a checking account. Give them non-transferable deposit receipts for their gold and gold receipts. Then they can write an order to you to pay the exact amount they need, telling you who to pay it to. Call this order a check. They can give the check to the person they owe, who will give it to you in order to receive his payment, which will usually be another receipt, either transferable or non-transferable, as the customer chooses. Thus you will still keep your gold and receive a small fee for each check cashed. This will greatly expand your receipts and expand your loans."

This Mulah did, and, this being a bookkeeping service, Mulah hired a young man named John Williams to take care of it for him. Lucifer was very pleased, and said, "You are ready for the next step to monetary power. Until now, when a loan has been paid back you have, of course, returned the title to the borrowers property to him. At the same time you have removed from circulation the amount of gold receipts you issued for that property. So if you loan one ounce of gold, one ounce is placed in circulation. It will stay in circulation until it is repaid to you. Then it will not be in circulation any longer. Therefore there is as much money in circulation as the people owe you, no more and no less. Continue to remove the receipts given you in repayment of the loans." Then Lucifer's eyes lit with all the fire of the underworld as he said, "In the future, however, remove from circulation one half of the interest paid to you, in addition to the amount of the loan. Then the people will have to borrow as many more gold receipts as you remove from circulation just to keep as many in circulation as there now are. And they will have to keep them borrowed and pay you interest on them forever."

"The people already need more receipts in circulation than they now have or they would not be willing to pay so much for them and the more indebted they become, the more desperately they will need the receipts. Thus instead of supplying the people with all the receipts they need with only a few pieces of property indebted to you, you will eventually have almost all property indebted to you and interest will be paid on all of this huge debt. When the time is right you can easily produce a crises in the economy which will make it impossible for the people to repay their loans and almost all the property will become yours. When that time comes you can blame the king and tell the people you must foreclose to prevent collapse of the value of the gold receipts which would bring mass starvation to all."

"When you take over the businesses hire the employees back thus showing the people that you are returning the economy to normal and tell them they will be better off without property to buy and care for," Lucifer concluded.

And so the poorer the people became the more they borrowed, and the more they borrowed the poorer they became. But why did the people not understand what was happening to them and do something about it? If changes had occured suddenly their effects would have been obvious. But changes had occured gradually. Never had a sudden event occured to unite the people or point the finger of guilt at the true cause. And had not things improved when Mulah began loaning his gold?

But Lucifer explained other reasons to Mulah and his five sons who were now approaching adulthood, as follows:

"I have taught you the secrets of banking and soon you boys will establish your own branches of Mulah's Bank in foreign lands. Thus in a few years we will have financial control of six countries. Financial control is complete control, for the king can be made your humble servant by the following simple procedure:

"First loan the king small sums on his own terms and be his humble servant, for once he has borrowed from you he will find it harder to pay back than to have done without to begin with, because he must repay the interest as well as the loan. Thus to pay it back he must raise taxes which will make his subjects dissatisfied. He can always be persuaded to believe it will be easier to pay back later. He will borrow more to pay back what he already owes. Lead him to believe that you will always refinance him when his loans are due if he wishes, but when he becomes hopelessly in debt to you, raise his interest rate higher, saying it is necessary to stop inflation, and still higher until he realizes his complete dependence on you."

"If he threatens to cancel his debt to you, tell him it will destroy the economy and cause the ruin of his country. If he does cancel the debt, you must destroy the economy by loaning no more gold receipts to anyone and by forcing all your customers to pay what they owe you immediately. Foreclose on all possible. This will remove most of the receipts from circulation very rapidly. Blame the king loudly. The king will now realize his dependence on you and he will be your humble servant. "

"But if you wish," Lucifer continued, "you may destroy the king or do anything you wish with the country or its people as follows:

"As important as gaining control of the king, is to gain control of the news media. This is, of course, done by loaning for its operation, which is very difficult to pay back. Increase the loans until they cannot be repaid: then foreclose. Always lead everyone to believe someone else is causing the problems and you are solving them or preventing worse things, even when foreclosing. Once you own controlling interest in the news media, put your most trusted servants in charge and be sure they serve the public well in all the little ways that are of no importance to you, for this will greatly increase the public confidence in all of your endeavors."

"Through the news media you can divide all groups of the public against one another: worker against employers, young against old, black against white, each religious group against each other, all against the king. Then guide the thinking of each group by placing your servants as leaders of all organizations, and especially those organizations who oppose you, and you will easily control almost all events. Divide and conquer. It is important to have servants you can trust to lead the opposition to what you would accomplish. They must speak strongly against you in order to gain the confidence of your opponents. However, they must never speak of the important objections to your activities and always lead their followers to work as hard as possible and pay as much as possible toward impossible and unimportant goals."

"To have such capable and trustworthy leaders you must train them from childhood in special schools. You must remove all knowledge of importance from the common schools. Lead the common students to memorize what others have said or learned, but discourage them from thinking for themselves. Then you can always tell them that someone said or discovered what you wish. Once this has been accomplished the entire citizenry, as well as the king will be in your power, They will revolt, destroy their own property and kill one another to establish their own enslavement if you repeatedly suggest that they should and give them an explanation why it is for their own good or why it is the idealistic thing to do. But you must repeatedly tell them that they are the most enlightened generation in history and that they are building a better world. Never make unpopular changes too suddenly. Appear to oppose them. Then after the people have expressed their opposition tell them it is now impossible to avoid."

"One of the basic rules of economic manipulation is constant change. You must have periodic wars, economic prosperity and collapse. You can give the people as much or as little of what they produce as you wish by lowering and raising the interest rate. The interest and taxes paid by manufacturers, retailers and others are added on to the price of the goods and so is paid by the consumers, although they are not aware of it. It is through these changes, and especially any crises, that you can bring about the political and social changes that you desire. You will always know what is going to happen in advance and so you will always be able to buy low and sell high. Thus you can ruin competitors of the businesses you acquire."

"Some property will be destroyed by war and riots but you can prevent the destruction of most of your own. Then you can finance the reconstruction. As to the wars you will finance and control both sides at a handsome profit. As long as one other nation exists as an example of natural economic conditions we can never fully control any nation because the contrast will be intolerable."

"The people are now complaining that you are accumulating all the wealth and property and they should have more. There is danger that they will suddenly rise against you and destroy all that you have done. To prevent this it should be suggested to the people that they should demand the return of all property, that they should overthrow the king and form a Government of the people. This government may then own all property, and being that it is the people's government, the people will then own everything."

"Of course actually we will be that government and control it by influencing the vote of the people through the news media. We can go beyond this and tell the people it is innacurate to count the votes in their neighborhoods and there is too much cheating that way. We will tell them something so important should be done by experts under controlled conditions. We can easily supply those few experts. Once the ballots have left the neighborhood uncounted no one will be able to prove our count is wrong."

" With the government under your full control you are ready for the final step, which will multiply your profits many times and most of all make it impossible to even breathe without our knowledge and consent." Lucifer's eyes shown like beacons as he continued.

"Give each of your dependable customers an identification card. Tell all the merchants that you will pay for the purchases of any of your customers who has such a card if he will sign a purchase receipt showing the number of his card. Charge the merchants a small fee at first. Charge the customers nothing provided they repay you within one moon. Then begin removing the gold receipts from circulation. Tell the people this is necessary because they have bought so much foreign goods that the gold is almost gone. When all the gold receipts are gone you may begin to raise your commission from the merchants as high as you like. The merchants will not care, for they will add the increase to the price of their goods. The people will not complain for they will not even know."

"Instead of receiving interest on the comparatively small amount of debt owed you, you will collect a tribute on every transaction, just for granting the people the privilege to trade. More important will be the complete record of every transaction this will give us and thus we will know exactly what everyone is doing at all times!" concluded Lucifer.

John Williams was a dedicated worker and learned his job well. When he did not understand something about Mulah's business he studied until he did. He was a quiet man and Mulah did not realize how much John knew.

Suddenly it all became clear to John. Mulah had developed, perhaps, the greatest invention of all time, namely the split barter system. Through the split barter system workers could specialize in one thing, turning out fast production, then trade with one another to obtain all the things they needed. Thus people could have the things they needed in a fraction of the time it would take them to make everything themselves. Of course the system was in use before Mulah began loaning receipts, but there had never been near enough gold and silver to make it work effectively. The only problem now was that Mulah was pretending to loan gold, thereby taking most of the profit of the system for himself, while actually he was only putting his customers wealth in circulation.

John knew that in most cases, Mulah gave his customers no gold or anything but a piece of paper. Having thought much about this, John realized that Mulah was making an even exchange with his customers. They gave him a note guaranteeing their payment to him and he gave them a note guaranteeing his payment of an equal amount. Since all that was ever involved in most cases was the exchange of notes among Mulah, his customers and their creditors, it made no difference when Mulah received his payment from his customer. Mulah had no difficulty in paying the customers creditors before the customer payed Mulah, because Mulah payed them in notes (I.O.U.s) only.

For example, if a person borrowed on his house he gave Mulah the title to his house and Mulah gave him a note for the gold, a fair and equal exchange. Mulah's notes were of more value to the customer at the moment because he could not divide the title of his house into small parts to spend. Mulah's notes were of sound value because the borrower must have the notes or gold to repay Mulah, in order to obtain the return of the title to his house or Mulah would claim the house. And the house was always worth more than the note Mulah gave his customer. Therefore the notes were eventually worth more to the borrower than the gold they represented. So Mulah's gold receipts had more than 100% backing, not of gold but of the customer's property. That was what gave them their value! John reasoned that all that needed changing was to stop the pretense of loaning gold and stop charging for it.

John quite his job with Mulah and started his own business which he called "The Exchange and Transfer Co." It worked almost like Mulah's business except that the "Exchange" charged no interest, made no pretense of loaning anything and issued Exchange notes instead of gold receipts. The Exchange made its profit from charges for services such as appraisals, title searches, check cashing, etc., just as Mulah, except for interest charges. The value of Exchange notes was defined in silver, because, John reasoned silver is too plentiful to be easily manipulated in value. The Exchange did not promise to pay in gold or silver, but only in Exchange notes which were issued in various values. The Exchange usually did pay in gold or silver if asked to do so, however, because some of its customers payed thusly.

Some people were afraid to do business with the Exchange as it did not promise gold or silver redemption as did Mulah. And how could John's Exchange stay in business without charging interest? Mulah increased the doubts of the people with rumors. But many people knew and trusted John and when he explained his system, many people realized Mulah was cheating them. They began cashing their gold deposit receipts with Mulah and very suddenly Mulah was bankrupt. Mulah's gold receipts were worthless. Many people went broke. Most of their debts were to Mulah. If Mulah could not pay them, must they still pay Mulah? Mulah blamed John's new system and said John would bankrupt the whole country and many people believed Mulah. But John explained that it was because Mulah had cheated the people, that there was not enough gold to redeem most of their receipts. This, they realized, was true.

Previous to Mulah's ruin the king had been overthrown by Mulah as part of Lucifer's plan. A republic had been established to replace the king. Now Mulah ordered the president and congress to outlaw John's system of exchange. Mulah received considerable support in this, partly because many did not understand John's system and partly because many of the congressmen had been receiving much profit from Mulah, and were hoping to again. With the collapse of Mulah's business they had lost heavily. If they outlawed John's business would they regain their losses?

John was called to testify before congress. When he explained his system and Mulah's he gained considerable approval. Then he explained that under his new system all would soon be as prosperous as Mulah made those who served him illegally. John described how he could finance national emergencies for only the cost of handling the paperwork and explained how the government could be quickly put on a debt free basis and the taxes cut drastically. He also explained that Mulah had no gold to repay anyone's losses and nothing to restart his business with. John asked congress to, therefore make his Exchange Notes legal tender.

After consideration congress overwhelmingly decided to support John and to make his notes legal tender in payment of all debts. Congress then cancelled all debts owed to Mulah because they were made under false pretenses and filed charges of "Fraud against the Federal Government" against Mulah.

This gave the public more understanding of John's system and greatly increased their confidence in it. Exchange Notes rapidly became plentiful yet their value held steady. All the willing and able workers soon found work and labor became the shortage instead of jobs and money. The people were producing all the goods they wanted to in only tnree to four hours a day. Once again workers took pride in their work because no one was agitating them and they were being rewarded with the fruits of the labor. And the world lived in peace happily ever after."

Originally Published by Omni Publications
Hawthorne, California 90250
"Permission to reprint "The Story of Mulah Goldman" is hereby granted."


The basic problems are: (1) the pretence of loaning something of intrinsic value, which provides an excuse for charging of interest, and (2) The removal of huge sums of money from circulation to force the total indebtedness up. The amount of money in circulation is not a major factor in determining its value. The main factors are what it can be redeemed for, how much gold, silver or property, and how much production of goods it will buy. These are establislied by law, union contracts and the productivity of the workers. American workers are now unemployed in huge numbers, far more than the published statistics indicate. The real reason why is that we have been buying much of our consumer goods from other countries, paying partially with American goods but largely with our gold. Now the gold is gone and we can support ourselves on imports little longer.

It will come as a big surprise to many to find that the world's leading bankers financed the Russian Revolution and took an active part in it. But it is true. Modern banking was founded by Meyer Amschel Rothschild in Frankfort, Germany. The Rothschilds, Warburgs, and Schiffs intermarried and spread their banking throughout the world. Paul M. Warburg married Jenney Nina Loeb and Jacob Schiff married Therisa Loeb, thus in combination they gained control of the American banking house of Khun, Loeb and Co. Paul M. Warburg came to the United States in 1906 to oversee the writing of the Federal Reserve Bank Act. He became a citizen in 1911, was decorated by the Kaiser in 1912, and was appointed Vice-Chairman of the new Federal Reserve Board in 1914.

While the allies were winning WWI against Germany, Germany, under the control of these bankers, was well on the way to conquering Russia from internal revolution! This was accomplished through world wide financing of the revolution, guided by the methods outlined by the German' Karl Marx, who was financed by capitalist Engles. At least $50,000,000 of that financing came from the United States through Kuhn, Loeb and Co..

Communism is the mortal enemy of free enterprise, but there is no conflict between Communism and the phony "Capitalism" of the money creators. No wonder our continual no-win policies. No wonder our government continues to feed and supply the enemy. The present world struggle is not between nations, but between the governments and the people!

See The Story of a Goldsmith named Fabian

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INDEX NAVIGATOR TO Little Book III "Wisdom and Freedom"

Prologue and Contents to "Wisdom and Freedom" (Little Book III Home Page)
Restore the Republic
Chapter I "Wisdom of Our Founders"
Chapter II "Behind the Scenes, Lurks the BANK"
Chapter III "The Occult Technology of Power"
Chapter IV "Education"
Chapter V "The United Nations"
Chapter VI "New World Order"
Chapter VII "Solutions"
Chapter VIII "Wisdom"
Chapter IX "War Truth"
Chapter XI "Environmental Issues"
Chapter XII "Super Science"
Chapter XIII "They Told The Truth!"
Chapter XIV "The Media"
Short Summary of "Wisdom and Freedom"
Conclusion to "Little Book III"
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