The Ludwig von Mises Institute dedicates this volume to all of its generous donors and wishes to thank these Patrons in particular:

Yousif Almoayyed and Budoor Kazim

Mr. William H. Anderson

Ms. Jean Angle

Mr. Larry W. Austin

Steven R. Berger

Mr. Bryan Lee Briggs

Dr. James G. Buss

Dr. Matthew Desmond

Dr. Christopher Detweiler

Mr. Paul J. Dietrich

Mr. and Mrs. James W. Dodds

Jerry T. Dowell

Mr. and Mrs. David Fusato

THE MISES INSTITUTE is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.

To

Lydia

the Indispensable Framework

There are two critical steps in the establishment and functioning of any cartel-like government regulation. . . . Step one is passing the bill and establishing the structure. The second step is selecting the proper personnel to run the structure. . . . conventional historians, not geared to power elite or ruling elite analysis, usually fall down on this crucial second task, of seeing precisely who the new rulers of the system would be.

MURRAY N. ROTHBARD, 1994

ACKNOWLEDGMENTS

The second act in a three act play is often the most difficult to write—it is the bridge between the beginning and the end. In the case of American history, the period 1849 to 1929 connects the founding of the country to the modern America that the present generation and its parents and grandparents have lived in. There can be no doubt that the support group I have had while researching and writing this book has greatly improved my ability to build that bridge.

FOREWORD

INTRODUCTION