The goblins had a bad reputation for mischief. They liked to have fun with human beings. They would listen to the conversation of people and then mock them by repeating the last word. That is the reason why echoes were called "week klank," or dwarf's talk.
Because these goblins were short, they envied men their greater stature and wanted to grow to the height of human beings. As they were not able of themselves to do this, they often sneaked into a house and snatched a child out of the cradle. In place of the stolen baby, one of their own wizened children was laid. That was the reason why many a poor little baby, that grew puny and thin, was called a "wiseel-kind," or changeling. When the sick baby could not get well, and medicine or care seemed to do no good, the mother thought that the goblins had taken away her own child.
It was only the female goblins that would change themselves into night mares and sit on the body of the dreamer. They usually came in through a hole or a crack; but if that person in the house could plug up the hole, or stop the crack, he could conquer the female goblin, and do what he pleased with her. If a man wanted to, he could make her his wife. So long as the hole was kept stopped up, by which the goblin entered, she made a good wife. If this crack was left open, or if the plug dropped out of the hole, the she-goblin was off and could never be found again.
The ruler of the goblins lived beneath the earth, as the king of the underworld. His palace was made of gold and glittered with gems. He had riches more than men could count. All the goblins and kabouters, who worked in the mines and at the forges and anvils, making swords, spears, bells, or jewels, obeyed him.
The most wonderful things about these dwarfs was the way in which they made themselves invisible, so that men were able to see neither the night mares nor the male goblins, while at their mischief. This was a little red cap which every goblin possessed, and which he was careful never to lose. The red cap acted like a snuffer on a candle, to put it out, and while under it, no goblin could be seen by mortal eyes.
Now it happened that one night, as a dear old lady lay dying on her bed, a middle-sized goblin, with his red cap on, came in through a crack into the room, and stood at the foot of her bed. Just for mischief and to frighten her by making himself visible, he took off his red cap.