I recall the story. I think it was by Del Rey, but I won't swear to it. If my library wasn't in storage I could walk over and search the shelf (yes, I own a copy)

This isn't quite that subject to abuse. For one thing, the lack of transmutation makes it harder to do some things, and the fact that it can't produce anything with more of a structure than a powder or lump limits stuff too.

It makes molecules, not objects.