[Synopsis of *Frenzied Finance* by Thomas 
W. Lawson. New York: Ridgway-Thayer, 1905]

                  -+- The Power of Dollars -+-

At no time in the history  of  the United States has the power of
dollars been as great as now.  It is possible today (1905),  with
dollars,  to  "steer" the selection of the candidates of both the
great parties for the office  of  President of the United States.
It is possible to  repeat  the  operation  in  the  selection  of
candidates  for  the  executive  and legislative offices of every
State  and  municipality  in  the   United  States,  and  with  a
sufficient number  of  dollars  to  "steer"  the  doings  of  the
law-makers   and   law-enforcers  of  the  national,  State,  and
municipal governments, and to  "steer" a sufficient proportion of
the court decisions.


Today (1905) "Standard Oil," the "Private Thing," is the greatest
power in the land, and its  secret  is the knowledge of the trick
of finance by which dollars are "made" from nothing.

The "Private Thing" is uncontrolled by any of the restrictions by
which the law defines and curbs the  corporation  whose  name  it
bears.  Already I have distinguished between "Standard Oil" which
wields  all  the powers of its subsidiary companies, and Standard
Oil, the seller of oil. [See CN 11.10]

Let us suppose that the  U.S.  government puts forth a particular
$10,000.  "Farmer Bob" receives, by the sale of his  wheat,  that
$10,000.   He  then  deposits  it  in  *The Bank*.  At this stage
enters the *Private Thing*.

The *Private Thing*  borrows  $3,300  of  Farmer Bob's money from
*The Bank*.  The *Private Thing* purchases a copper mine with the
money, and deposits the title with *The Bank* as  collateral  for
the  $3,300  loan.   Then  the  *Private Thing* declares that the
copper mine is worth $10,000.   (The actual cost, $3,300, is kept
secret.)  The *Private Thing* issues to himself a piece of  paper
stamped  "10,000  stock  dollars."  The *Private Thing* takes the
"10,000 stock dollars" to  *The  Bank*,  and exchanges it for the
remaining $6,700 belonging to Farmer Bob.

At this stage there is actually in use among the  people  $16,700
--  $10,000  which  is  recorded, known, and legal, being used by
Farmer Bob and *The  Bank*,  and  $6,700  which is unrecorded and
unknown to any but the *Private Thing*  and  *The  Bank*.   Right
here is the secret device, the financial trick.

In the next step, the *Private Thing* sells his $3,300 -- stamped
as  "10,000  stock  dollars"  --  to  Farmer  Bob  for his *real*
$10,000.  Farmer  Bob  withdraws  the  money  from  *The Bank* by
simply making out a  check  in  favor  of  the  *Private  Thing*.
(Farmer  Bob  is  told  the  "10,000  stock dollars" will yield a
higher rate of interest than *The  Bank* can afford to pay.)  The
*Private Thing* deposits Farmer  Bob's  check  with  *The  Bank*,
thereby eliminating its $10,000 debt to *The Bank*.

At  this  point,  Farmer Bob still has $10,000, but it is "10,000
stock dollars."  The *Private Thing*  is the possessor of $6,700,
and "Mr. Miner" (from whom the copper mine was purchased) is  the
possessor  of  $3,300.   *The  Bank*  remains where it was at the

Agents of the *Private  Thing*  --  Wall  Street and the press --
carefully educate the people to believe  that  their  country  is
tremendously  prosperous.   Its  "prosperity" is evidenced by the
$6,700 added wealth in the form of 6,700 new stock dollars!

At the next stage the  financial trick accomplished by the secret
device is complete.  At the next growing season, Farmer Bob wants
to buy $10,000 worth of seed and  machinery.   But  the  *Private
Thing*  knows  that  Farmer Bob's "10,000 stock dollars" are only
worth $3,300 and  will  not  sell;  the  true  value of the stock
dollars is proclaimed, and Farmer Bob is compelled  to  sell  his
stock dollars for whatever the *Private Thing* is willing to pay.

By  this operation, Farmer Bob has lost $6,700 of his own making,
and the *Private Thing* has  "made" $6,700 in real dollars.  *The
Bank* has been the instrument by which the  *Private  Thing*  has
deprived  Farmer  Bob of his savings, because the *Private Thing*
and *The Bank* are one and the same.

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