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To: Secret_Agent_Man who wrote (169701)	6/2/2002 1:23:29 PM
From: Secret_Agent_Man	Respond to of 436258

Rep. Howard Buffett, father of Wall Street legend Warren Buffett, was too far ahead of his time, so few listened to the concerns and even fewer appreciated his wisdom when he addressed a group of businessmen on May 4, 1948. To our good fortune, his address was published two days later in The Commercial and Financial Chronicle, and has been reprinted by the Committee for Monetary Research & Education (10004 Greenwood Court, Charlotte, NC 28215-9621), a not-for-profit organization dedicated to the restoration of sound money. The passage of time has proven Rep. Buffett to be right, so the ideas of this brilliant Congressman from Nebraska should be reexamined in the light of our quest for reform and our need to regain control of Congress. His words speak for themselves. <snip> "Before 1933 the people themselves had an effective way to demand economy. Before 1933, whenever the people became disturbed over Federal spending, they could redeem their paper currency in gold, and wait for common sense to return to Washington." "That happened on various occasions and conditions sometimes became strained, but nothing occurred like the ultimate consequences of paper money inflation." "When the people's right to restrain public spending by demanding gold coin was taken away from them, the automatic flow of strength from the grass-roots to enforce economy in Washington was disconnected." "With a restoration of the gold standard, Congress would have to again resist handouts. If Congress seemed receptive to reckless spending schemes, depositors' demands over the country for gold would soon become serious. That alarm in turn would quickly be reflected in the halls of Congress. The legislators would learn from the banks back home and from the Treasury officials that confidence in the Treasury was endangered." "Congress would be forced to confront spending demands with firmness. The gold standard acted as a silent watchdog to prevent unlimited public spending." Rep. Buffett clearly understood the consequences of his recommendation. He also recognized the outcry that would result among those who would criticize the restoration of the Dollar's direct and transparent link to Gold. "Most opponents of free coinage of gold admit that restoration is essential, but claim the time is not propitious. Some argue that there would be a scramble for gold and our enormous gold reserves would soon be exhausted." "Actually, this argument simply points up the case. If there is so little confidence in our currency that restoration of gold coin would cause our gold stocks to disappear, then we must act promptly." Ironically, even though Gold redeemability was not restored, much of our Gold stock has disappeared. The 22,100 tonnes held in May 1948 has been drastically reduced to 8,100 tonnes today. This dissipation happened in a way that Rep. Buffett would have found alarming because he understood irredeemable currency posed a threat that could deplete American wealth. The "gold is not subject to demand by American citizens. It could all be shipped out of this country without the people having any chance to prevent it." The reduction of the Gold stock robbed the American people. They created the wealth that built it, but they were helpless from stopping its dispersal. Nevertheless, what remains is still the world's largest hoard of Gold, and it can be put to effective use by reestablishing Dollar redeemability into Gold. What motivated Rep. Buffett? Although it may be hard to understand or accept in today's environment of cynicism and flagrant self-interest, his words reveal him to be a true statesman, whose aim was to serve his country. In one introspective moment, he provides a frank and candid personal assessment. fgmr.com