Chapter 2

FAITH

Visualization and Belief in the Attainment of Desire
The Second Step to 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.1

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 humanity. 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 human mind and Infinite Intelligence.

How to Develop Faith

There comes now a statement which will give a better understanding of the importance the principle of autosuggestion assumes in the transmutation of desire into its physical, or monetary, equivalent: FAITH is a state of mind which may be induced, or created, by affirmations or repeated instructions to the subconscious mind, through the principle of autosuggestion.

As an illustration, consider one main purpose for which, presumably, you are 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 autosuggestion (Chapter 3) and the subconscious mind (Chapter 11), as summarized in the chapter on autosuggestion, you can CONVINCE your subconscious mind that you believe you will receive that for which you ask. Your subconscious mind will act upon that belief, then pass it 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 person who has never seen color and has nothing with which to compare what you describe. Faith is a state of mind which you can develop at will after you have mastered the 13 principles in this book—because it is a state of mind which develops through voluntary application and use of these principles.

Repetition or affirmation of orders to your subconscious mind is the only method of voluntary development of the emotion of faith.

Perhaps the meaning will be made clearer through the following explanation of how individuals sometimes become criminals. Stated in the words of a famous criminologist, “When people 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 together with any thought impulse, give it greater action than any of these emotions can do singly.

It is not only those 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, that can 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 their 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 when you call upon your subconscious mind just as you would if you were ALREADY IN POSSESSION OF THE MATERIAL THING WHICH YOU ARE DEMANDING.

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 by now to give you a starting point from which you may, through experiment and practice, acquire the ability to mix FAITH with any order given to your 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 to discourage—and eliminate—negative emotions.2

A mind dominated by positive emotions, or “positive mental attitude,” 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 religionists3 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, this book will describe all that is known about the principle through which FAITH can 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 human mind, into its spiritual equivalent.

FAITH is the only agency through which the cosmic force of Infinite Intelligence can be harnessed and used by humanity.

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 autosuggestion. Let us center our attention, therefore, on 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 we repeat a lie over and over, we will eventually accept the lie as truth. Moreover, we will BELIEVE it to be the truth. Each of us is what we are because of the DOMINATING THOUGHTS which we permit to occupy our mind. Thoughts which we deliberately place in our own mind, and encourage with sympathy, and with which we mix any one or more of the emotions, constitute the motivating forces which direct and control our 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 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 KIND!

All human experience, and all human thinking, occurs in an environment—in a universe—saturated with radiated energy and “signals.” From gravity to magnetism, from cosmic rays to X-rays, infrared rays, visible light, sound waves, radar, shortwaves, radio and television signals—we live in a world constantly bombarded by “vibrations” of energy, though we can perceive directly only the tiniest portion of them.

Likewise, thought impulses are “vibrations” of energy transmitted in some deeply mysterious, and as yet uncomprehended, way as electrical and chemical currents among brain cells. While we do not yet understand and cannot describe scientifically the how of the process, it is clear that thought impulses, like electromagnetic radiation, also are “out there” somehow—as some experiments with extrasensory perception, or ESP, seem clearly to indicate.

Human experience, like the cosmos itself, teems with thought vibrations or “influences”—both destructive and constructive. It is characterized, at all times, by vibrations of fear, poverty, disease, failure, misery, and vibrations of prosperity, health, success, and happiness—just as surely as the atmosphere 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 television or radio.

From this great “storehouse” of experience, the human mind is constantly attracting vibrations which harmonize with that which DOMINATES the mind. Any thought, idea, plan, or purpose which one holds in one’s mind attracts from the “thought vibrations of existence” 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 in the next few pages to write out a statement of your major purpose, or Definite Chief Aim, commit it to memory, and repeat it out loud 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 you may have grown up in or now find yourself living in, and to build your own life to ORDER. Taking inventory of mental assets and abilities, 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 your subconscious mind.

Self-Confidence Formula

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 that 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 30 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 that through the principle of autosuggestion 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.4

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 that 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.

Sixth. 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 one has yet been able to explain. It has baffled the scientists of all ages. The psychologists have named this the “Law of Autosuggestion” 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 autosuggestion. 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 person 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 turns the wheels of industry and renders useful service if used constructively, or can snuff out life if used improperly, so will the Law of Autosuggestion 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, then the Law of Autosuggestion 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 EQUALS FOUR!

Like the wind which carries one ship East and another West, the Law of Autosuggestion will lift you up or pull you down, according to the way you set your sails of THOUGHT.

The Law of Autosuggestion, 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 the poet5 had in mind.

Somewhere in your makeup (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 40. 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 truly great men. That experience was mixed with the emotions of sorrow and LOVE. It came to him through Anne Rutledge, the only woman 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 because love comes very near to translating one’s thought impulses into their spiritual equivalent. During my long years of research, I discovered from the analysis of the life work and achievements of hundreds of people of outstanding accomplishment that there was the influence of a spouse’s love back of nearly EVERY ONE OF THEM.

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 one of the greatest single forces ever to influence the minds of people. 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 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.

FAITH is the cornerstone of every great religion. The Old Testament psalmist has written, “O love the LORD, all ye his saints: for the LORD preserveth the FAITHFUL, and plentifully rewardeth the proud doer.” The apostle Luke tells us, “And Stephen, full of FAITH and power, did great wonders and miracles among the people,” and Mark reports Jesus as saying, “Daughter, thy FAITH hath made thee whole; go in peace, and be whole of thy plague.”

The prophet says in the Qur’an, “Surely those who believe and do good, their Lord will guide them by their FAITH; there shall flow from beneath them rivers in gardens of bliss.” In the Analects of Confucius, the master says, “Hold FAITHFULNESS and sincerity as first principles, and be moving continually to what is right. This is the way to exalt one’s virtue.”

In the Bhagavad-Gita we find, “The FAITH of each is in accordance with one’s own nature….A person is known by the faith. One can become whatever one wants to be (if one constantly contemplates on the object of desire with FAITH).” And again, “The one who has FAITH, and is sincere, and has mastery over the senses, gains…knowledge. Having gained this, one at once attains the supreme peace. But the ignorant, who has no faith and is full of doubt…perishes. There is neither this world nor the world beyond nor happiness for the one who doubts.”

Let us consider the power of FAITH as it was demonstrated by Mahatma Gandhi of India,6 who exhorted his followers to “Be the change you want to see in the world.” In this man the world had one of the most astounding examples known to civilization of the possibilities of FAITH. Gandhi wielded more power than any other person living in his time, and, yet, he had none of the orthodox tools of power such as money, battleships, soldiers, and materials of warfare. Gandhi had no money, he had no home, he did not own a suit of clothes, but HE DID HAVE POWER. How did 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 accomplished through the influence of FAITH that which the strongest military power on earth could not then—and never will—accomplish through soldiers and military equipment. He 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 worldwide economic downturn 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 has been taught the world. During this time of difficulty, the world had evidence in abundance that widespread FEAR can 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 set for the world, and they will apply to business the same tactics which he 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” who now labor in the steel plants, the coal mines, the 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. People who labor will receive more than daily wages. They will share more and more in profits from the business, the same as those who supply the capital for business. But first they must GIVE MORE TO THEIR EMPLOYERS and stop bickering and bargaining by force, at the expense of the public. They must earn the right to profit-sharing!

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 GANDHI. Only in this way can leaders get from their followers the spirit of FULL cooperation which constitutes power in its highest and most enduring form.7

This stupendous age in which we live and from which we are just emerging has taken the soul out of people. Its leaders have driven workers as though they were pieces of cold machinery; they were forced to do so by the employees who 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 workers 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 is both interesting and profitable to analyze an event which provides an excellent understanding of the method by which industrialists and business people 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 often wonder 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 individuals can THINK AND GROW RICH, this story should dispel that doubt because you can plainly see in the story of U.S. Steel the application of a major portion of The 13 Steps to Riches8 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 hall 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 Stillmans 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,9 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.10

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 stockjobbers 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.

* Skibo was a splendid castle Carnegie built for his family on Dornoch Firth in Scotland.

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, had 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? Nobody 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.11

* * * * * * * *

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 DOLLARS12 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 those 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.

And he rose, like all great achievers, on the wings of FAITH, which can be created by a powerful force known as AUTO-SUGGESTION.