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Free issue of MICHAEL


in order not to move the gold unnecessarily and risk

attack from robbers. In other words, a buyer, rather

than getting a gold plate from the goldsmith to pay

off his creditor, gave to the latter the goldsmith’s

receipt, giving him a claim to the gold kept in the


Instead of the gold, it was the goldsmith’s re-

ceipts which were changing hands. For as long as

there was only a limited number of sellers and buy-

ers, it was not a bad system. It was easy to follow

the journey of the receipts.

The gold lender

The goldsmith soon made a

discovery, which was to affect

mankind far more than the memor-

able journey of Christopher Colum-

bus himself. He learned, through

experience, that nearly all of the

gold that was left with him for safe-

keeping remained untouched in

his vault. Barely more than one-in-

ten of the owners of this gold ever

took it out of the vault to conduct

their business transactions, instead

using their receipts for the purpose.

The thirst for gain, the longing to become rich

faster than by means of the jeweller’s tools, sharp-

ened the mind of our man, and he made a daring

gesture. “Why,” he said to himself, “would I not be-

come a gold lender ! ” A lender, mind you, of gold

which did not belong to him. And since he did not

possess a righteous soul like that of Saint Eligius (or

St. Eloi, the master of the mint of French kings Clo-

taire II and Dagobert I, in the seventh century), he

hatched and nurtured the idea. He refined the idea

even more: “To lend gold which does not belong

to me, at interest, needless to say ! Better still, my

dear master (was he talking to Satan? ), instead of

the gold, I will lend a receipt, and demand payment

of interest in gold; that gold will be mine, and my

clients’ gold will remain in my vaults to back up new


If you have some imagination, go back a few cen-

turies to a Europe already old, but not yet progres-

sive. In those days, money was not used much in

everyday business transactions. Most of those trans-

actions were simple direct exchanges, barter. How-

ever, the kings, the lords, the wealthy, and the big

merchants owned gold, and used it to finance their

armies’ expenses, or to purchase foreign products.

However, the wars between lords

or nations, and armed robberies, were

causing the gold and the diamonds of

the wealthy to fall into the hands of

robbers. So the owners of gold, who

had become very nervous, made it

a habit to entrust their treasures for

safekeeping to the goldsmiths who,

because of the precious metal they

worked with, had very well protected

vaults. The goldsmith received the

gold, gave a receipt to the depositor,

and took care of the gold, charging

a fee for this service. Of course, the

owner could claim his gold, all or in

part, whenever he felt like it.

The merchant leaving for Paris or Marseille,

or travelling from Troyes, France, to Amsterdam,

could provide himself with gold to make his pur-

chases. But here again, there was danger of being

attacked along the road; he then convinced his sell-

er in Marseille or Amsterdam to accept, rather than

metal, a signed receipt attesting his claim to part of

the treasure on deposit at the goldsmith’s in Paris or

Troyes. The goldsmith’s receipt bore witness to the

reality of the funds.

It also happened that the supplier, in Amster-

dam or elsewhere, managed to get his own gold-

smith in London or Geneva to accept, in return for

transportation services, the signed receipt that he

had received from his French buyer. In short, little

by little, the merchants began to exchange among

themselves these receipts rather than the gold itself,

The goldsmith who became a banker – A true story


Louis Even

“The only thing that will correct it is the one

thing that is sacrosanct in the media, in education,

in politics, and, yes, even in our social circles. The

only thing that will correct it is to strip private com-

panies (banks) of their power to create money as

debt at interest, and to adopt a method of money

creation whereby the United States Treasury cre-

ates money as credit !

“This issue is the key issue to the financial fu-

ture of our nation and world! This chicanery is

practiced throughout the world! We must turn an

entrenched, centuries old financial establishment

on its ear ! Read about it. Study it. Understand it.

Talk about it. Then raise some hell ! ”

The best way

to do all that is to get people around you to sub-

scribe to the “Michael” Journal !

Alain Pilote