"This constructive indebtedness was intended to be perpetual, and its volume was not limited to the actual cost of the various enterprises that were incorporated. The railroads, for instance, sold stock to many times the cost of the roads, or as it was called, 'watered their stock,' and then they ordinarily bonded the roads for vast sums besides. These bonded debts however, were very often created for the purpose of bankrupting the companies for the enrichment of an 'inside ring.' This process was known as 'freezing out the stockholders,' and by thus reducing capitalization it was not necessary for the roads to exact so much tribute from their patrons in order to pay dividends. Other corporate enterprises also 'watered' their stock, and some of them got such a hold upon the people that they continued to pay exorbitant dividends on their fictitious valuation until they were absorbed into the larger combination of the whole people. "At the close of the Transition Period the volume of interest bearing indebtedness and dividend earning investments was estimated at fifty thousand millions, and the average cost to the people six per cent. per annum, or an aggregate of three thousand millions every year to be taken out of the wealth produced by the people. The bulk of these obligations, public, corporate and private was held by the great banking institutions which had been established by the corporation and trust magnates, who practically owned the lands and all the machinery of production and distribution. They owned not only the indebtedness against the people but they controlled the medium by which it must be paid, and on their demand under the law, this medium of final payment was gold.