An old lady is talking to a young teacher.

People who lived in out-of-the-way places in the old days they couldn’t

get a doctor, could they? They sickened and they got better

with the help of what was to hand. The old ways are

mocked at now, but take this penny-sillin they make so

much fuss of; nothing but a mould, they say, and everybody

that knew anything knew that a good bread poultice

should be made of bread gone blue with mould.

Is she trying to say that people nowadays mock at the old ways, but THEY take penicillin and boast about it and it's nothing else but mould?
Yes, she is saying that although the younger people mock the older peoples ways of living, the old people had a wisdom, that has been lost by the younger people as they don't need to know these things anymore. The penicillin is an example of that.
I see. Thanks.