The Second Step toward Riches
FAITH is the head chemist of the mind. When FAITH is blended with the vibration of thought, the subconscious mind instantly picks up the vibration, translates it into its spiritual equivalent, and transmits it to Inﬁnite Intelligence, as in the case of prayer.
The emotions of FAITH, LOVE, and SEX are the most powerful of all the major positive emotions. When the three are blended, they have the effect of “coloring” the vibration of thought in such a way that it instantly reaches the subconscious mind, where it is changed into its spiritual equivalent, the only form that induces a response from Inﬁnite Intelligence.
Love and faith are psychic; related to the spiritual side of man. Sex is purely biological, and related only to the physical. The mixing, or blending, of these three emotions has the effect of opening a direct line of communication between the ﬁnite, thinking mind of man, and Inﬁnite Intelligence.
How To Develop Faith
There comes, now, a statement which will give a better understanding of the importance the principle of auto-suggestion assumes in the transmutation of desire into its physical, or monetary equivalent; namely: FAITH is a state of mind which may be induced, or created, by afﬁrmation or repeated instructions to the subconscious mind, through the principle of auto-suggestion.
As an illustration, consider the purpose for which you are, presumably, reading this book. The object is, naturally, to acquire the ability to transmute the intangible thought impulse of DESIRE into its physical counterpart, money. By following the instructions laid down in the chapters on auto-suggestion, and the subconscious mind, as summarized in the chapter on auto-suggestion, you may CONVINCE the subconscious mind that you believe you will receive that for which you ask, and it will act upon that belief, which your subconscious mind passes back to you in the form of “FAITH,” followed by deﬁnite plans for procuring that which you desire.
The method by which one develops FAITH, where it does not already exist, is extremely difﬁcult to describe, almost as difﬁcult, in fact, as it would be to describe the color of red to a blind man who has never seen color, and has nothing with which to compare what you describe to him. Faith is a state of mind which you may develop at will, after you have mastered the thirteen principles, because it is a state of mind which develops voluntarily, through application and use of these principles.
Repetition of afﬁrmation of orders to your subconscious mind is the only known method of voluntary development of the emotion of faith. Perhaps the meaning may be made clearer through the following explanation as to the way men sometimes become criminals. Stated in the words of a famous criminologist, “When men ﬁrst come into contact with crime, they abhor it. If they remain in contact with crime for a time, they become accustomed to it, and endure it. If they remain in contact with it long enough, they ﬁnally embrace it, and become inﬂuenced by it.”
This is the equivalent of saying that any impulse of thought which is repeatedly passed on to the subconscious mind is, ﬁnally, accepted and acted upon by the subconscious mind, which proceeds to translate that impulse into its physical equivalent, by the most practical procedure available.
In connection with this, consider again the statement, ALL THOUGHTS WHICH HAVE BEEN EMOTIONALIZED, (given feeling) AND MIXED WITH FAITH, begin immediately to translate themselves into their physical equivalent or counterpart.
The emotions, or the “feeling” portion of thoughts, are the factors which give thoughts vitality, life, and action. The emotions of Faith, Love, and Sex, when mixed with any thought impulse, give it greater action than any of these emotions can do singly.
Not only thought impulses which have been mixed with FAITH, but those which have been mixed with any of the positive emotions, or any of the negative emotions, may reach, and inﬂuence the subconscious mind.
From this statement, you will understand that the subconscious mind will translate into its physical equivalent, a thought impulse of a negative or destructive nature, just as readily as it will act upon thought impulses of a positive or constructive nature. This accounts for the strange phenomenon which so many millions of people experience, referred to as “misfortune,” or “bad luck.” There are millions of people who BELIEVE themselves “doomed” to poverty and failure, because of some strange force over which they BELIEVE they have no control. They are the creators of their own “misfortunes,” because of this negative BELIEF, which is picked up by the subconscious mind, and translated into its physical equivalent.
This is an appropriate place at which to suggest again that you may beneﬁt, by passing on to your subconscious mind, any DESIRE which you wish translated into its physical, or monetary equivalent, in a state of expectancy or BELIEF that the transmutation will actually take place. Your BELIEF, or FAITH, is the element which determines the action of your subconscious mind. There is nothing to hinder you from “deceiving” your subconscious mind when giving it instructions through autosuggestion, as I deceived my son’s subconscious mind.
To make this “deceit” more realistic, conduct yourself just as you would, if you were ALREADY IN POSSESSION OF THE MATERIAL THING WHICH YOU ARE DEMANDING, when you call upon your subconscious mind.
The subconscious mind will transmute into its physical equivalent, by the most direct and practical media available, any order which is given to it in a state of BELIEF, or FAITH that the order will be carried out.
Surely, enough has been stated to give a starting point from which one may, through experiment and practice, acquire the ability to mix FAITH with any order given to the subconscious mind.
Perfection will come through practice. It cannot come by merely reading instructions.
If it be true that one may become a criminal by association with crime, (and this is a known fact), it is equally true that one may develop faith by voluntarily suggesting to the subconscious mind that one has faith. The mind comes, ﬁnally, to take on the nature of the inﬂuences which dominate it. Understand this truth, and you will know why it is essential for you to encourage the positive emotions as dominating forces of your mind, and discourage and eliminate negative emotions.
A mind dominated by positive emotions, becomes a favorable abode for the state of mind known as faith. A mind so dominated may, at will, give the subconscious mind instructions, which it will accept and act upon immediately.
FAITH IS A STATE OF MIND WHICH MAY BE INDUCED BY AUTOSUGGESTION
All down the ages, the religionists have admonished struggling humanity to “have faith” in this, that, and the other dogma or creed, but they have failed to tell people HOW to have faith. They have not stated that “faith is a state of mind, and that it may be induced by self-suggestion.”
In language which any normal human being can understand, we will describe all that is known about the principle through which FAITH may be developed, where it does not already exist. Have Faith in yourself; Faith in the Inﬁnite.
Before we begin, you should be reminded again that: FAITH is the “eternal elixir” which gives life, power, and action to the impulse of thought!
The foregoing sentence is worth reading a second time, and a third, and a fourth. It is worth reading aloud!
FAITH is the starting point of all accumulation of riches!
FAITH is the basis of all “miracles,” and all mysteries which cannot be analyzed by the rules of science!
FAITH is the only known antidote for FAILURE!
FAITH is the element, the “chemical” which, when mixed with prayer, gives one direct communication with Inﬁnite Intelligence.
FAITH is the element which transforms the ordinary vibration of thought, created by the ﬁnite mind of man, into the spiritual equivalent.
FAITH is the only agency through which the cosmic force of Inﬁnite Intelligence can be harnessed and used by man.
EVERY ONE OF THE FOREGOING STATEMENTS IS CAPABLE OF PROOF!
The proof is simple and easily demonstrated. It is wrapped up in the principle of auto-suggestion. Let us center our attention, therefore, upon the subject of self suggestion, and ﬁnd out what it is, and what it is capable of achieving. It is a well known fact that one comes, ﬁnally, to BELIEVE whatever one repeats to one’s self, whether the statement be true or false. If a man repeats a lie over and over, he will eventually accept the lie as truth. Moreover, he will BELIEVE it to be the truth. Every man is what he is, because of the DOMINATING THOUGHTS which he permits to occupy his mind. Thoughts which a man deliberately places in his own mind, and encourages with sympathy, and with which he mixes any one or more of the emotions, constitute the motivating forces, which direct and control his every movement, act, and deed!
Comes, now, a very signiﬁcant statement of truth:
THOUGHTS WHICH ARE MIXED WITH ANY OF THE FEELINGS OF EMOTIONS, CONSTITUTE A “MAGNETIC” FORCE WHICH ATTRACTS, FROM THE VIBRATIONS OF THE ETHER, OTHER SIMILAR, OR RELATED THOUGHTS.
A thought thus “magnetized” with emotion may be compared to a seed which, when planted in fertile soil, germinates, grows, and multiplies itself over and over again, until that which was originally one small seed, becomes countless millions of seeds of the SAME BRAND!
The ether is a great cosmic mass of eternal forces of vibration. It is made up of both destructive vibrations and constructive vibrations. It carries, at all times, vibrations of fear, poverty, disease, failure, misery; and vibrations of prosperity, health, success, and happiness, just as surely as it carries the sound of hundreds of orchestrations of music, and hundreds of human voices, all of which maintain their own individuality, and means of identiﬁcation, through the medium of radio.
From the great storehouse of the ether, the human mind is constantly attracting vibrations which harmonize with that which DOMINATES the human mind. Any thought, idea, plan, or purpose which one holds in one’s mind attracts, from the vibrations of the ether, a host of its relatives, adds these “relatives” to its own force, and grows until it becomes the dominating, MOTIVATING MASTER of the individual in whose mind it has been housed.
Now, let us go back to the starting point, and become informed as to how the original seed of an idea, plan, or purpose may be planted in the mind. The information is easily conveyed: any idea, plan, or purpose may be placed in the mind through repetition of thought. This is why you are asked to write out a statement of your major purpose, or Deﬁnite Chief Aim, commit it to memory, and repeat it, in audible words, day after day, until these vibrations of sound have reached your subconscious mind.
We are what we are, because of the vibrations of thought which we pick up and register, through the stimuli of our daily environment.
Resolve to throw off the inﬂuences of any unfortunate environment, and to build your own life to ORDER. Taking inventory of mental assets and liabilities, you will discover that your greatest weakness is lack of self-conﬁdence. This handicap can be surmounted, and timidity translated into courage, through the aid of the principle of autosuggestion. The application of this principle may be made through a simple arrangement of positive thought impulses stated in writing, memorized, and repeated, until they become a part of the working equipment of the subconscious faculty of your mind.
First. I know that I have the ability to achieve the object of my Deﬁnite Purpose in life, therefore, I DEMAND of myself persistent, continuous action toward its attainment, and I here and now promise to render such action.
Second. I realize the dominating thoughts of my mind will eventually reproduce themselves in outward, physical action, and gradually transform themselves into physical reality, therefore, I will concentrate my thoughts for thirty minutes daily, upon the task of thinking of the person I intend to become, thereby creating in my mind a clear mental picture of that person.
Third. I know through the principle of auto-suggestion, any desire that I persistently hold in my mind will eventually seek expression through some practical means of attaining the object back of it, therefore, I will devote ten minutes daily to demanding of myself the development of SELF-CONFIDENCE.
Fourth. I have clearly written down a description of my DEFINITE CHIEF AIM in life, and I will never stop trying, until I shall have developed sufﬁcient self-conﬁdence for its attainment.
Fifth. I fully realize that no wealth or position can long endure, unless built upon truth and justice, therefore, I will engage in no transaction which does not beneﬁt all whom it affects. I will succeed by attracting to myself the forces I wish to use, and the cooperation of other people. I will induce others to serve me, because of my willingness to serve others. I will eliminate hatred, envy, jealousy, selﬁshness, and cynicism, by developing love for all humanity, because I know that a negative attitude toward others can never bring me success. I will cause others to believe in me, because I will believe in them, and in myself.
I will sign my name to this formula, commit it to memory, and repeat it aloud once a day, with full FAITH that it will gradually inﬂuence my THOUGHTS and ACTIONS so that I will become a self-reliant, and successful person.
Back of this formula is a law of Nature which no man has yet been able to explain. It has bafﬂed the scientists of all ages. The psychologists have named this law “auto-suggestion,” and let it go at that.
The name by which one calls this law is of little importance. The important fact about it is-it WORKS for the glory and success of mankind, IF it is used constructively. On the other hand, if used destructively, it will destroy just as readily. In this statement may be found a very signiﬁcant truth, namely; that those who go down in defeat, and end their lives in poverty, misery, and distress, do so because of negative application of the principle of auto-suggestion.
The cause may be found in the fact that ALL IMPULSES OF THOUGHT HAVE A TENDENCY TO CLOTHE THEMSELVES IN THEIR PHYSICAL EQUIVALENT.
The subconscious mind, (the chemical laboratory in which all thought impulses are combined, and made ready for translation into physical reality), makes no distinction between constructive and destructive thought impulses. It works with the material we feed it, through our thought impulses. The subconscious mind will translate into reality a thought driven by FEAR just as readily as it will translate into reality a thought driven by COURAGE, or FAITH.
The pages of medical history are rich with illustrations of cases of “suggestive suicide.” A man may commit suicide through negative suggestion, just as effectively as by any other means. In a midwestern city, a man by the name of Joseph Grant, a bank ofﬁcial, “borrowed” a large sum of the bank’s money, without the consent of the directors. He lost the money through gambling. One afternoon, the Bank Examiner came and began to check the accounts. Grant left the bank, took a room in a local hotel, and when they found him, three days later, he was lying in bed, wailing and moaning, repeating over and over these words, “My God, this will kill me! I cannot stand the disgrace.” In a short time he was dead. The doctors pronounced the case one of “mental suicide.”
Just as electricity will turn the wheels of industry, and render useful service if used constructively; or snuff out life if wrongly used, so will the law of auto-suggestion lead you to peace and prosperity. or down into the valley of misery, failure, and death, according to your degree of understanding and application of it.
If you ﬁll your mind with FEAR, doubt and unbelief in your ability to connect with, and use the forces of Inﬁnite Intelligence, the law of auto-suggestion will take this spirit of unbelief and use it as a pattern by which your subconscious mind will translate it into its physical equivalent.
“THIS STATEMENT IS AS TRUE AS THE STATEMENT THAT TWO AND TWO ARE FOUR!”
Like the wind which carries one ship East, and another West, the law of auto-suggestion will lift you up or pull you down, according to the way you set your sails of THOUGHT.
The law of auto-suggestion, through which any person may rise to altitudes of achievement which stagger the imagination, is well described in the following verse:
“If you think you are beaten, you are, If you think you dare not, you don’t
If you like to win, but you think you can’t, It is almost certain you won’t.
“If you think you’ll lose, you’re lost For out of the world we ﬁnd,
Success begins with a fellow’s will It’s all in the state of mind.
“If you think you are outclassed, you are, You’ve got to think high to rise,
You’ve got to be sure of yourself before You can ever win a prize.
“Life’s battles don’t always go To the stronger or faster man,
But soon or late the man who wins Is the man WHO THINKS HE CAN!”
Observe the words which have been emphasized, and you will catch the deep meaning which the poet had in mind.
Somewhere in your make-up (perhaps in the cells of your brain) there lies sleeping, the seed of achievement which, if aroused and put into action, would carry you to heights, such as you may never have hoped to attain.
Just as a master musician may cause the most beautiful strains of music to pour forth from the strings of a violin, so may you arouse the genius which lies asleep in your brain, and cause it to drive you upward to whatever goal you may wish to achieve.
Abraham Lincoln was a failure at everything he tried, until he was well past the age of forty. He was a Mr. Nobody from Nowhere, until a great experience came into his life, aroused the sleeping genius within his heart and brain, and gave the world one of its really great men. That “experience” was mixed with the emotions of sorrow and LOVE. It came to him through Anne Rutledge, the only woman whom he ever truly loved.
It is a known fact that the emotion of LOVE is closely akin to the state of mind known as FAITH, and this for the reason that Love comes very near to translating one’s thought impulses into their spiritual equivalent. During his work of research, the author discovered, from the analysis of the life-work and achievements of hundreds of men of outstanding accomplishment, that there was the inﬂuence of a woman’s love back of nearly EVERY ONE OF THEM. The emotion of love, in the human heart and brain, creates a favorable ﬁeld of magnetic attraction, which causes an inﬂux of the higher and ﬁner vibrations which are aﬂoat in the ether.
If you wish evidence of the power of FAITH, study the achievements of men and women who have employed it. At the head of the list comes the Nazarene. Christianity is the greatest single force which inﬂuences the minds of men. The basis of Christianity is FAITH, no matter how many people may have perverted, or misinterpreted the meaning of this great force, and no matter how many dogmas and creeds have been created in its name, which do not reﬂect its tenets.
The sum and substance of the teachings and the achievements of Christ, which may have been interpreted as “miracles,” were nothing more nor less than FAITH. If there are any such phenomena as “miracles” they are produced only through the state of mind known as FAITH! Some teachers of religion, and many who call themselves Christians, neither understand nor practice FAITH.
Let us consider the power of FAITH, as it is now being demonstrated, by a man who is well known to all of civilization, Mahatma Gandhi, of India. In this man the world has one of the most astounding examples known to civilization, of the possibilities of FAITH. Gandhi wields more potential power than any man living at this time, and this, despite the fact that he has none of the orthodox tools of power, such as money, battle ships, soldiers, and materials of warfare. Gandhi has no money, he has no home, he does not own a suit of clothes, but HE DOES HAVE POWER. How does he come by that power?
HE CREATED IT OUT OF HIS UNDERSTANDING OF THE PRINCIPLE OF FAITH, AND THROUGH HIS ABILITY TO TRANSPLANT THAT FAITH INTO THE MINDS OF TWO HUNDRED MILLION PEOPLE.
Gandhi has accomplished, through the inﬂuence of FAITH, that which the strongest military power on earth could not, and never will accomplish through soldiers and military equipment. He has accomplished the astounding feat of INFLUENCING two hundred million minds to COALESCE AND MOVE IN UNISON, AS A SINGLE MIND.
What other force on earth, except FAITH could do as much? There will come a day when employees as well as employers will discover the possibilities of FAITH. That day is dawning. The whole world has had ample opportunity, during the recent business depression, to witness what the LACK OF FAITH will do to business.
Surely, civilization has produced a sufﬁcient number of intelligent human beings to make use of this great lesson which the depression has taught the world. During this depression, the world had evidence in abundance that widespread FEAR will paralyze the wheels of industry and business. Out of this experience will arise leaders in business and industry who will proﬁt by the example which Gandhi has set for the world, and they will apply to business the same tactics which he has used in building the greatest following known in the history of the world. These leaders will come from the rank and ﬁle of the unknown men, who now labor in the steel plants, the coal mines, the automobile factories, and in the small towns and cities of America.
Business is due for a reform, make no mistake about this! The methods of the past, based upon economic combinations of FORCE and FEAR, will be supplanted by the better principles of FAITH and cooperation. Men who labor will receive more than daily wages; they will receive dividends from the business, the same as those who supply the capital for business; but, ﬁrst they must GIVE MORE TO THEIR EMPLOYERS, and stop this bickering and bargaining by force, at the expense of the public. They must earn the right to dividends!
Moreover, and this is the most important thing of all-THEY WILL BE LED BY LEADERS WHO WILL UNDERSTAND AND APPLY THE PRINCIPLES EMPLOYED BY MAHATMA GANDHI. Only in this way may leaders get from their followers the spirit of FULL cooperation which constitutes power in its highest and most enduring form.
This stupendous machine age in which we live, and from which we are just emerging, has taken the soul out of men. Its leaders have driven men as though they were pieces of cold machinery; they were forced to do so by the employees who have bargained, at the expense of all concerned, to get and not to give.
The watchword of the future will be HUMAN HAPPINESS AND CONTENTMENT, and when this state of mind shall have been attained, the production will take care of itself, more effectively than anything that has ever been accomplished where men did not, and could not mix FAITH and individual interest with their labor.
Because of the need for faith and cooperation in operating business and industry, it will be both interesting and proﬁtable to analyze an event which provides an excellent understanding of the method by which industrialists and business men accumulate great fortunes, by giving before they try to get.
The event chosen for this illustration dates back to 1900, when the United States Steel Corporation was being formed. As you read the story, keep in mind these fundamental facts and you will understand how IDEAS have been converted into huge fortunes.
- First, the huge United States Steel Corporation was born in the mind of Charles M. Schwab, in the form of an IDEA he created through his IMAGINATION!
- Second, he mixed FAITH with his IDEA.
- Third, he formulated a PLAN for the transformation of his IDEA into physical and ﬁnancial reality.
- Fourth, he put his plan into action with his famous speech at the University Club.
- Fifth, he applied, and followed-through on his PLAN with PERSISTENCE, and backed it with ﬁrm DECISION until it had been fully carried out.
- Sixth, he prepared the way for success by a BURNING DESIRE for success.
If you are one of those who have often wondered how great fortunes are accumulated, this story of the creation of the United States Steel Corporation will be enlightening. If you have any doubt that men can THINK AND GROW RICH, this story should dispel that doubt, because you can plainly see in the story of the United States Steel, the application of a major portion of the thirteen principles described in this book.
This astounding description of the power of an IDEA was dramatically told by John Lowell, in the New York World-Telegram, with whose courtesy it is here reprinted.
A PRETTY AFTER-DINNER SPEECH FOR A BILLION DOLLARS
“When, on the evening of December 12, 1900, some eighty of the nation’s ﬁnancial nobility gathered in the banquet hail of the University Club on Fifth Avenue to do honor to a young man from out of the West, not half a dozen of the guests realized they were to witness the most signiﬁcant episode in American industrial history.
“J. Edward Simmons and Charles Stewart Smith, their hearts full of gratitude for the lavish hospitality bestowed on them by Charles M. Schwab during a recent visit to Pittsburgh, had arranged the dinner to introduce the thirty-eight-year-old steel man to eastern banking society. But they didn’t expect him to stampede the convention. They warned him, in fact, that the bosoms within New York’s stuffed shirts would not be responsive to oratory, and that, if he didn’t want to bore the Stilhnans and Harrimans and Vanderbilts, he had better limit himself to ﬁfteen or twenty minutes of polite vaporings and let it go at that.
“Even John Pierpont Morgan, sitting on the right hand of Schwab as became his imperial dignity, intended to grace the banquet table with his presence only briefly. And so far as the press and public were concerned, the whole affair was of so little moment that no mention of it found its way into print the next day.
“So the two hosts and their distinguished guests ate their way through the usual seven or eight courses. There was little conversation and what there was of it was restrained. Few of the bankers and brokers had met Schwab, whose career had ﬂowered along the banks of the Monongahela, and none knew him well. But before the evening was over, they-and with them Money Master Morgan were to be swept off their feet, and a billion dollar baby, the United States Steel Corporation, was to be conceived.
“It is perhaps unfortunate, for the sake of history, that no record of Charlie Schwab’s speech at the dinner ever was made. He repeated some parts of it at a later date during a similar meeting of Chicago bankers. And still later, when the Government brought suit to dissolve the Steel Trust, he gave his own version, from the witness stand, of the remarks that stimulated Morgan into a frenzy of ﬁnancial activity.
“It is probable, however, that it was a `homely’ speech, somewhat ungrammatical (for the niceties of language never bothered Schwab), full of epigram and threaded with wit. But aside from that it had a galvanic force and effect upon the ﬁve billions of estimated capital that was represented by the diners. After it was over and the gathering was still under its spell, although Schwab had talked for ninety minutes, Morgan led the orator to a recessed window where, dangling their legs from the high, uncomfortable seat, they talked for an hour more.
“The magic of the Schwab personality had been turned on, full force, but what was more important and lasting was the full-ﬂedged, clear-cut program he laid down for the aggrandizement of Steel. Many other men had tried to interest Morgan in slapping together a steel trust after the pattern of the biscuit, wire and hoop, sugar, rubber, whisky, oil or chewing gum combinations. John W. Gates, the gambler, had urged it, but Morgan distrusted him. The Moore boys, Bill and Jim, Chicago stock jobbers who had glued together a match trust and a cracker corporation, had urged it and failed. Elbert H. Gary, the sanctimonious country lawyer, wanted to foster it, but he wasn’t big enough to be impressive. Until Schwab’s eloquence took J. P. Morgan to the heights from which he could visualize the solid results of the most daring ﬁnancial undertaking ever conceived, the project was regarded as a delirious dream of easy-money crackpots.
“The ﬁnancial magnetism that began, a generation ago, to attract thousands of small and sometimes inefﬁciently managed companies into large and competition-crushing combinations, had become operative in the steel world through the devices of that jovial business pirate, John W. Gates. Gates already had formed the American Steel and Wire Company out of a chain of small concerns, and together with Morgan had created the Federal Steel Company.
The National Tube and American Bridge companies were two more Morgan concerns, and the Moore Brothers had forsaken the match and cookie business to form the `American’ group Tin Plate, Steel Hoop, Sheet Steel-and the National Steel Company.
“But by the side of Andrew Carnegie’s gigantic vertical trust, a trust owned and operated by ﬁfty-three partners, those other combinations were picayune. They might combine to their heart’s content but the whole lot of them couldn’t make a dent in the Carnegie organization, and Morgan knew it.
“The eccentric old Scot knew it, too. From the magniﬁcent heights of Skibo Castle he had viewed, ﬁrst with amusement and then with resentment, the attempts of Morgan’s smaller companies to cut into his business. When the attempts became too bold, Carnegie’s temper was translated into anger and retaliation. He decided to duplicate every mill owned by his rivals. Hitherto, he hadn’t been interested in wire, pipe, hoops, or sheet. Instead, he was content to sell such companies the raw steel and let them work it into whatever shape they wanted. Now, with Schwab as his chief and able lieutenant, he planned to drive his enemies to the wall.
“So it was that in the speech of Charles M. Schwab, Morgan saw the answer to his problem of combination. A trust without Carnegie-giant of them all-would be no trust at all, a plum pudding, as one writer said, without the plums.
“Schwab’s speech on the night of December 12, 1900, undoubtedly carried the inference, though not the pledge, that the vast Carnegie enterprise could be brought under the Morgan tent.
He talked of the world future for steel, of reorganization for efﬁciency, of specialization, of the scrapping of unsuccessful mills and concentration of effort on the ﬂourishing properties, of economies in the ore trafﬁc, of economies in overhead and administrative departments, of capturing foreign markets.
“More than that, he told the buccaneers among them wherein lay the errors of their customary piracy. Their purposes, he inferred, bad been to create monopolies, raise prices, and pay themselves fat dividends out of privilege. Schwab condemned the system in his heartiest manner. The shortsightedness of such a policy, he told his hearers, lay in the fact that it restricted the market in an era when everything cried for expansion. By cheapening the cost of steel, he argued, an ever-expanding market would be created; more uses for steel would be devised, and a goodly portion of the world trade could be captured. Actually, though he did not know it, Schwab was an apostle of modern mass production.
“So the dinner at the University Club came to an end. Morgan went home, to think about Schwab’s rosy predictions. Schwab went back to Pittsburgh to run the steel business for `Wee Andra Carnegie,’ while Gary and the rest went back to their stock tickers, to ﬁddle around in anticipation of the next move.
“It was not long coming. It took Morgan about one week to digest the feast of reason Schwab had placed before him. When he had assured himself that no ﬁnancial indigestion was to result, he sent for Schwab-and found that young man rather coy. Mr. Carnegie, Schwab indicated, might not like it if he found his trusted company president had been ﬂirting with the Emperor of Wall Street, the Street upon which Carnegie was resolved never to tread.
Then it was suggested by John W. Gates the go-between, that if Schwab `happened’ to be in the Bellevue Hotel in Philadelphia, J. P. Morgan might also `happen’ to be there. When Schwab arrived, however, Morgan was inconveniently ill at his New York home, and so, on the elder man’s pressing invitation, Schwab went to New York and presented himself at the door of the ﬁnancier’s library.
“Now certain economic historians have professed the belief that from the beginning to the end of the drama, the stage was set by Andrew Carnegie-that the dinner to Schwab, the famous speech, the Sunday night conference between Schwab and the Money King, were events arranged by the canny Scot. The truth is exactly the opposite. When Schwab was called in to consummate the deal, he didn’t even know whether `the little boss,’ as Andrew was called, would so much as listen to an offer to sell, particularly to a group of men whom Andrew regarded as being endowed with something less than holiness. But Schwab did take into the conference with him, in his own handwriting, six sheets of copper-plate ﬁgures, representing to his mind the physical worth and the potential earning capacity of every steel company he regarded as an essential star in the new metal ﬁrmament.
“Four men pondered over these ﬁgures all night. The chief, of course, was Morgan, steadfast in his belief in the Divine Right of Money. With him was his aristocratic partner, Robert Bacon, a scholar and a gentleman. The third was John W. Gates whom Morgan scorned as a gambler and used as a tool. The fourth was Schwab, who knew more about the processes of making and selling steel than any whole group of men then living. Throughout that conference, the Pittsburgher’s ﬁgures were never questioned. If he said a company was worth so much, then it was worth that much and no more. He was insistent, too, upon including in the combination only those concerns he nominated. He had conceived a corporation in which there would be no duplication, not even to satisfy the greed of friends who wanted to unload their companies upon the broad Morgan shoulders. Thus he left out, by design, a number of the larger concerns upon which the Walruses and Carpenters of Wall Street had cast hungry eyes.
“When dawn came, Morgan rose and straightened his back. Only one question remained. “`Do you think you can persuade Andrew Carnegie to sell?’ he asked.
“`I can try,’ said Schwab.
“`If you can get him to sell, I will undertake the matter,’ said Morgan.
“So far so good. But would Carnegie sell? How much would he demand? (Schwab thought about $320,000,000). What would he take payment in? Common or preferred stocks? Bonds? Cash? No-body could raise a third of a billion dollars in cash.
“There was a golf game in January on the frost-cracking heath of the St. Andrews links in Westchester, with Andrew bundled up in sweaters against the cold, and Charlie talking volubly, as usual, to keep his spirits up. But no word of business was mentioned until the pair sat down in the cozy warmth of the Carnegie cottage hard by. Then, with the same persuasiveness that had hypnotized eighty millionaires at the University Club, Schwab poured out the glittering promises of retirement in comfort, of untold millions to satisfy the old man’s social caprices. Carnegie capitulated, wrote a ﬁgure on a slip of paper, handed it to Schwab and said, `all right, that’s what we’ll sell for.’
“The ﬁgure was approximately $400,000,000, and was reached by taking the $320,000,000 mentioned by Schwab as a basic ﬁgure, and adding to it $80,000,000 to represent the increased capital value over the previous two years.
“Later, on the deck of a trans-Atlantic liner, the Scotsman said ruefully to Morgan, `I wish I had asked you for $100,000,000 more.’
“`If you had asked for it, you’d have gotten it,’ Morgan told him cheerfully.
* * * * * * *
“There was an uproar, of course. A British correspondent cabled that the foreign steel world was `appalled’ by the gigantic combination. President Hadley, of Yale, declared that unless trusts were regulated the country might expect `an emperor in Washington within the next twenty-ﬁve years.’ But that able stock manipulator, Keene, went at his work of shoving the new stock at the public so vigorously that all the excess water-estimated by some at nearly $600,000,000-was absorbed in a twinkling. So Carnegie had his millions, and the Morgan syndicate had $62,000,000 for all its `trouble,’ and all the `boys,’ from Gates to Gary, had their millions.
* * * * * * *
“The thirty-eight-year-old Schwab had his reward. He was made president of the new corporation and remained in control until 1930.”
The dramatic story of “Big Business” which you have just ﬁnished, was included in this book, because it is a perfect illustration of the method by which DESIRE CAN BE TRANSMUTED INTO ITS PHYSICAL EQUIVALENT!
I imagine some readers will question the statement that a mere, intangible DESIRE can be converted into its physical equivalent. Doubtless some will say, “You cannot convert NOTHING into SOMETHING!” The answer is in the story of United States
Steel. That giant organization was created in the mind of one man. The plan by which the organization was provided with the steel mills that gave it ﬁnancial stability was created in the mind of the same man. His FAITH, his DESIRE, his IMAGINATION, his PERSISTENCE were the real ingredients that went into United States Steel. The steel mills and mechanical equipment acquired by the corporation, AFTER IT HAD BEEN BROUGHT INTO LEGAL EXISTENCE, were incidental, but careful analysis will disclose the fact that the appraised value of the properties acquired by the corporation increased in value by an estimated SIX HUNDRED MILLION DOLLARS, by the mere transaction which consolidated them under one management.
In other words, Charles M. Schwab’s IDEA, plus the FAITH with which he conveyed it to the minds of J. P. Morgan and the others, was marketed for a proﬁt of approximately $600,000,000. Not an insigniﬁcant sum for a single IDEA!
What happened to some of the men who took their share of the millions of dollars of proﬁt made by this transaction, is a matter with which we are not now concerned. The important feature of the astounding achievement is that it serves as unquestionable evidence of the soundness of the philosophy described in this book, because this philosophy was the warp and the woof of the entire transaction. Moreover, the practicability of the philosophy has been established by the fact that the United States Steel Corporation prospered, and became one of the richest and most powerful corporations in America, employing thousands of people, developing new uses for steel, and opening new markets; thus proving that the $600,000,000 in proﬁt which the Schwab IDEA produced was earned.
RICHES begin in the form of THOUGHT! The amount is limited only by the person in whose mind the THOUGHT is put into motion. FAITH removes limitations!
Remember this when you are ready to bargain with Life for whatever it is that you ask as your price for having passed this way. Remember, also, that the man who created the United States Steel Corporation was practically unknown at the time. He was merely Andrew Carnegie’s “Man Friday” until he gave birth to his famous IDEA. After that he quickly rose to a position of power, fame, and riches.
THERE ARE NO LIMITATIONS TO THE MIND EXCEPT THOSE WE ACKNOWLEDGE
BOTH POVERTY AND RICHES ARE THE OFFSPRING OF THOUGHT