Louis D. Brandeis was a Supreme Court Justice and a patriot. He wrote Other People's Money and How Bankers Use It to warn the American people about the greedy bankers that control the United States and drive us into financial ruin. The book attacked the use of investment funds to promote the consolidation of various industries under the control of a small number of corporations, which Brandeis alleged were working in concert to prevent competition. Brandeis harshly criticized investment bankers who controlled large amounts of money deposited in their banks by middle-class people.
The heads of these banks, Brandeis pointed out, routinely sat on the boards of railroad companies and large industrial manufacturers of various products, and routinely directed the resources of their banks to promote the interests of their own companies. These companies, in turn, sought to maintain control of their industries by crushing small businesses and stamping out innovators who developed better products to compete against them. Brandeis supported his contentions with a discussion of the actual dollar amounts--in millions of dollars--controlled by specific banks, industries, and industrialists such as J. P. Morgan, noting that these interests had recently acquired a far larger proportion of American wealth than corporate entities had ever had before. He extensively cited testimony from a Congressional investigation performed by the Pujo Committee, named after Louisiana Representative Ars ne Pujo, into self-serving and monopolistic business dealing. Chapter V of the book (What Publicity Can Do) contains in its opening section a well-known line that has frequently been cited in support of regulation through disclosure obligations: Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.
The great monopoly in this country is the money monopoly. So long as that exists, our old variety and freedom and individual energy of development are out of the question. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men, who, even if their actions be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who, necessarily, by every reason of their own limitations, chill and check and destroy genuine economic freedom. This is the greatest question of all; and to this, statesmen must address themselves with an earnest determination to serve the long future and the true hberties of men.
The Pujo Committee -- appointed in 1912 -- found:
Far more dangerous than all that has happened to us in the past in the way of ehmination of competition in industry is the control of credit through the domination of these groups over our banks and industries....
Whether under a different currency system the resources in our banks would be greater or less is comparatively immaterial if they continue to be controlled by a small group....
Warren and Brandeis's The Right to Privacy, with 2010 Foreword by Steven Alan Childress, J.D., Ph.D., a senior law professor at Tulane University. Includes photos and rare news clippings. Part of the Legal Legends Series by Quid Pro Books.
The most influential piece of legal scholarship, many scholars say, is this 1890 Harvard Law Review article by two Boston lawyers (one of whom later became a legendary Supreme Court Justice). Warren and Brandeis created -- by cleverly weaving strands of precedent, policy, and logic -- the legal concept of privacy and the power of legal protection for that right. Their clear and effective prose stands the test of time, and influenced such modern notions as inviolate personality and law's elasticity. They saw the threat of new technology.
Most of all, they asserted the fundamental right to be let alone, and its implications to modern law are profound. Their privacy concept has grown over the decades, now raising issues about abortion, drug testing, surveillance, sexual orientation, free speech, the right to die, and medical confidentiality. All these spinoffs trace their origins to this master work. It is simply one of the most significant parts of the modern canon of law, politics, and sociology.
The extensive new Foreword by Professor Childress shares not only this import and effect, but also the fascinating backstory behind the article. Its origins are found in Warren's own prickly experiences with the press and the paparazzi of the day, famously after their reports about and photos of his family weddings.