Dr. Branden, what interests me most about this interchange is that not only William Dwyer and I, but also you and Ayn Rand hold some version or other of a "dual-aspect theory." And, ironically, the version of dual-aspect theory that held the most pitfalls, historically, was the kind espoused by you and Miss Rand....
Quoting Jerome Shaffer's article "Mind-Body Problem" in The Encyclopedia of Philosophy (New York: Macmillan, 1967):
DOUBLE ASPECT THEORIES. Some philosophers have held the view that the mental and the physical are simply different aspects of something that is itself neither mental nor physical. Spinoza is the most famous example. He held that man could be considered an extended, bodily thing and, equally well, a thinking thing, although neither characterization, nor even both taken together, exhausted the underlying substance [compare with your "underlying reality"].....
There are two crucial obscurities in the double-aspect theory. First, what is the underlying unity ["reality"] that admits of the various aspects? Spinoza called it "God or Nature"....Herbert Spencer, calling a spade a spade, referred to it simply as the Unknowable. [And Rand, as you report, had her own special term: "little stuff."] Contemporary philosophers suggest that the underlying unity is the "person." [P.F. Strawson attempted a definition: 'a type of entity such that both predicates ascribing states of consciousness and predicates ascribing corporeal characteristics, a physical situation etc. are equally applicable to a single individual of a single type.' Individuals, 1959, p. 102. This is too circular to be of much help.]
The second obscurity in the double-aspect theory is that it is not clear what an 'aspect' is. [You use another term, "manifestation," which seems identical in meaning, if my Webster's unabridged dictionary is any judge.] The point of talking about different aspects...is to suggest that the differences are not intrinsic to the thing [in other words, as Rand frequently stated, that there is no mind-body dichotomy in reality!] but only exist in relation to human purposes, outlook, conceptual scheme, frame of reference, etc. This point is even reflected in Spinoza's definition of 'attribute' (for example, extension or thought) as 'that which the intellect perceives as constituting the essence of a substance.' (Ethics I, Def. 4)"
Shaffer concludes this section with a very telling point, which seems to echo the point Dwyer and I and others have made regarding your and Rand's concept of an "Underlying Reality": "In general, double-aspect theories fail to improve our understanding of the mind-body relationship."
In general, I would agree. It certainly is true of the version that you and Rand maintained (entertained?). My own version simply sees matter and consciousness as attributes, viz., as capacities for different kinds of action–and that we are aware of these capacities and their activation through different channels of awareness (perception and introspection, respectively). And what they are attributes of is not some mysterious "underlying reality," but simply a conscious, living, material entity–i.e., a human being. Further, since they are capacities, not entities, there is no need to seek after a will-o-the-wisp explanation of how they interact. They do not, because they cannot; they are not the kinds of existents that interact....
Matter is generic, in the Aristotelian sense of capacity, and it is not right to think of it as a kind of stuff that can do things, apart from the entity that does things by virtue of that capacity. There are inanimate physical capacities of entities–"inanimate" being the most common understanding of "matter;"and there are animate physical capacities ("living matter"); and there are conscious physical capacities ("conscious matter"). Thus, as Aristotle defined "matter"–i.e., as potential (to do something)–it is obvious that any attribute, including consciousness, is material. Of course, he was contrasting matter not with spirit, but with form or actualization. And as various people including you and Rand have pointed out, what a thing is (its actuality/form) determines what it can do (its potential/matter). So, again, there is no need to wrack our brains trying to figure out how mind and matter interact, for they do no such thing. Instead, ...they are both matter–i.e., they are both potentials or capacities, by virtue of which various parts of one's physical body interact with one another (or with other entities).
Thus, there are two distinct senses in which one can appropriately have what you refer to as a "materialistic bias" in one's view of consciousness, without getting into the obvious pitfall of reductive materialism:
(1) one can view consciousness as part of the (Aristotelian) matter or potency of certain living organisms to engage in certain actions, and
(2) one can view consciousness as necessarily dependent upon physical matter, but not vice versa. I would like to think that this is a view that all Objectivists, including you (and Rand, if she were still alive) would be comfortable with.
I'll conclude by quoting Dwyer's last paragraph, which I think was very good, and then restate it in terms more compatible with what I've outlined above:
...Mind is the conscious awareness characteristic of certain entities, and matter is the physical capacity for action necessarily characteristic of any entity with conscious awareness. Thus, there can be matter without consciousness–i.e., material entities that are not conscious; but there cannot be consciousness without matter–i.e., conscious entities that are not material.) Any problem in explaining their "interaction" vanishes as soon as one recognizes that they are two aspects of the same entity–and that only the parts (i.e., its cells and organs and systems) of an entity interact, not its aspects. (The aspects of an entity include its attributes– whether its length or weight or density or other material characteristics, or its being percipient or being emotional or being evaluative or being conceptual or being imaginative or other conscious characteristics–and its actions and relationships.)
As I see it, you cannot escape the logic of causality being the relationship between an entity and its actions, something drilled home to me by you and Rand and Peikoff and Kelley and a number of others who were transmitting the Aristotelian view (as against the Humean event-event view). You cited "underlying reality," "little stuff," and interactions between "manifestations" as a model of mind-body held by Ayn Rand. But so is the above model of causality, which sees interactions as being between entities, not "manifestations" or attributes or processes or events or whatever. The two models seem to be incompatible, don't you think? If you can find a way to reconcile them, I'm all ears!