Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 12, 2016
Document Release Date: 
January 31, 2002
Sequence Number: 
Case Number: 
Publication Date: 
September 20, 1957
Content Type: 
PDF icon CIA-RDP80B01676R003800180024-8.pdf633.26 KB
1111 oil "I'll I FOR RELEASE: After 1 PM, FRIDAY September 20, 1957 "ANTI-AMERIlCANIISM AND T H E PEOPLE I S CAPITALISM MOVEI ENT" an address by THEODORE S. REPPLIER President? The Advertising Council at a luncheon of the C01,5'ONt1EAI.TH CLLM OF CALIFORNIA San Francisco Friday, September 20, 1957 (EXEC ;`T 'r err: ~ p Relea a 2002/02/1 :.CIA-RDP80B01676R003800180 4-8 For The AdveAt RQJQY&gi is a non-pro f, non-partisan usiness organization which serves the public iterest by marshaling the forces of advertising to promote voluntary, individual actions in solving national problems. Executive Registry Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 I have been asked to speak: to you on "Anti-Americanism and the People's Capitalism movement", and I an happy you have "liven me this assignment. For both of these topics deal With ideas; and there is nothing more important than ideas today, when the cold war has heated history to the boiling point. After spending much of the past three years of my life in studying this struggle between communism and freedom around the world, I feel strongly that ideas will engineer the road to the future. This is rough on Americans, for we are a people of action, We have produced few philosophers, possibly because Americans find it hard to si still very long at one time. If anyone doubts the explosive nature of ideas, let him consider that roughly three-fifths of our entire national budget is being spent for cold wcr activities. About sixty-two cents of every dollar the Internal Revenue Bureau extracts from you goes for activities which spring directly from the present conflict in ideologies. Hence, he who aspires to any reduction of his income tax might well give some attention to ideas. Consider also, that one half the world has been set against the other by a book -- a book containing the economic philosophy Of Karl Marx. Ideas got the world into this predicament, and ideas -- not bombs -- are likely to be chat gets us out. Yet we Americans think so little of ideas that whereas last year we spent 35 billions on our military establishment, Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -2- we gave the U. S. Information Agency only :,;113 million to project the facts about us to the world -- about 70; of chat one American company spends to advertise its products at home. And this year Congress cut even that modest sum 16;, causing USIS to shut up shop in country after country and leaving a clear field to the delicfhted communists. There has been much loose talk about how poorly we run our ideological war, often by ill-meaning amateurs with a hatchet to grind. And there has likewise been loose talk about anti- Americanism, talk often so loose it needs a bit of Sanforizing. When a tourist comes back from abroad, and declares that is rampant, it is often another way of saying that he had a tiff with a concior-e in Paris, was cheated by a barber in Rome, and read a critical editorial in a London news- paper. Actually, personal experience is about as valid an index to public opinion as a one-wife survey. As a matter of fact, public opinion is often confused with several other types of opinion. First, there is government opinion -- the statements about us made by officials of foreign countries. Second, there 9.s elite opinion; for example, the leaders of the various foreign political parties. Third, there is newspaper comment and edi- torials. None of these three are true public opinion, although often quoted as such. Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 It is very easey to be didactic -- and wrong -- about public opinion. Somebody says, III have been to Pakistan and I know the Pakistanis feel thus and so" -- but, of course, he knows no such thing. The French journalist Raymond Cartier. wrote an article for "Paris iiatch"" entitled 111.1hy are the Ar-Leri- cans detested?" in which he took the attitude the Americans are detested everywhere, everybody knows that. :)as he right? I doubt it. We are envied, yes -- and envy often emerges above the :;surface of the ego looking 'like irate. :Then I was in Tokyo, a nevws)a_ner correspondent friend of mine spent an evening parrying the vicious stabs at America by a group of Japanese teen-agers.ien he was about to leave, the most vituperative of the Japanese youngsters took him aside and asked his help in gettinc: a visa to the U. S.: :', little envy is a good thing; it is often a better stimulant to ambition than vodka. ;Fortunately, we can at least _;et a clue to public attitudes in ::;urope through the existence of some continuing public opinion surveys. These were made by private firms usint tl.e Gallup method, and are at least .;iore reliable than conversations in h gh school French with six Paris taxi-drivers. i eginning with 1954, people of Great Britain, Italy , Austria, ?;rest Germany, Belgium and France were asked f1:;hit is your general opinion of such and such a country? Very good, good, fair, bad or very bad, The list of countries ::ientioned Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 included both the United States and Soviet Russia. "'hen the answers were in, the "Foods" and the "bads" were added up for each country, and the lesser subtracted from the greater. And whereas the Soviet Union was in each case in the minus or unpopular column -- .,lore "bads" than "goods" -- the united States was in each case well up in the plus or popular column -- many more "goods" than "bads". These studies have been repeated. periodically up to the present time, and not once from 151L to 1.57 did the United State:, fall down out of the talus area. ;e came close to it tiith. Britain public opinion at the time of Quemoy and ilatsu; but in 6 months we were back up to talus 50. ?;e slid again at the time of Suez, but surprisingly enough we bobbed right back in a week or two. On the graph slh:owwin:; this trend of public opinion, our curve runs generally highest in Belgium and Austria., next highest in Uest Germany and Italy, then Britain and lowest of all, France. '1e keep just above the dividing line with the French. The French are, however, cynical about everything in- cluding themselves; to paraphrase "iiy Fair Lady", the French don't care what marries they call us as long as they pronounce them ;~roper?ly. Probing human feelings is a complex and uncertain business at best; but the, next time some one tells you that _:mericans are disliked everywhere; I think you may reply that even if Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -5- 'unericans are, America isn't. But please note this: being loved is relatively un- important. It is pleasant to be admired, of course, but ue are in something far more serious than a popularity contest. Remember, it is possible to be popular and dead at the same time. -,-e are in an ideological war of attrition between two opposing ways of life, and what really counts is whether us are winning or losing. '.;hose philosophy and ideals are gaining converts, and whose is losing them? Now right here we have to stop and ask ourselves what this bitter struggle is all about. The basic differences are familiar to all of you, but it is useful to review a few hi th points from communist doctrine, as revealed by Karl liar,,. Vastly oversimplified, iiarx taught that virtually every condition of life finds two opposing forces at work, which he calls the thesis and anti-thesis. These two forces, he said, eventually produce a synthesis, which represent the next upward step in human living. Thus, the primitive society was succeeded by a society based on slavery (as in ancient home), the slave-based society was succeeded by feudalism, feudalism was replaced by ca vitalism, and capitalism will fall and be replaced by communism. The opposing forces present in capitalism, said Marx and angels, are the means of production and the private ownership of }roduction. The built-in conflict present in these forces Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80B01676R003800180024-8 -6- results in crises, said Tiarx, ihich grow deeper as capitalism develops. To preserve profits, the capitalists progressively squeeze the workers until the oppressed finally revolt. Hence, it is inevitable that capitalism will fall and communism will become universal. Khrushchev is perfectly sincere when, after a few vodkas, he says "Ile will. bury you." _Iow note particularly three devastating points in this conu:lunist doctrine; First, that capitalism is a system where the few e::;.ploi t the many. Second, that capitalism. is immoral and evil. Third, that the fall of capitalism is inevitable; it is doomed by history. These are essentially the points that have been ha:imered home by the world-wide Communist propaganda apparatus for over thirty years, illustrated in terms of current events. They have been drummed into the ears of the world -- particularly ; urope and now i sia -- to the point where virtually every country has been contaminated by theca to some extent. For example, a public opinion study in 19,;6 polled people in five capitalistic European countries as to their opinion of capitalism -- with shocking results. Only in Great ;;ritain did the majority have a favorable opinion of capitalism -- and that by the slender margin of plus 7. In Italy, the majority opinion was unfavorable -- Approved For Release 2002/02/13 : CIA-RDP80B01676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -7- minus 1.7. In ?Jest Germany it was minus 25; in France, minus 35; and in the Netherlands, almost minus L1o. In other words, capitalism is indeed a nasty word almost everywhere. The result was that not long back hardly a sin ;le U. S. propagandist dared mention it. We were caught in a deadly semantic trap. hen the full implication of this predicament darned on no in the course of a round-the-:rorld propaganda study, I was thoroughly depressed. If the world went on believing all capi- talism was evil, capitalism would doubtless eventually fall. And as capitalism went, so went America. But Z rI :~t are the actual facts about capitalism? ';ell, no fair observer could deny that capitalism, a r, -oract:i.ced in some parts of the world, was a pretty smelly business. In parts of Asia and ,frica, it was synonymous with ruthless exploitation of resources and the natives. In areas of Europe, it meant restrictive cartels, rigid class lines, and low wage levels. But while all this was going on, a species of capitalism was evolving; in the United State;; so different as to be virtually a new social invention. You all know the story. Take just one group -- xierican industrial workers. This is the group which iIarx said must be progressively squeezed by capitalism. Yet since 19111, the beginning period of swift change, the average wage level of American industrial worl.ers has risen 507;; while the ,rices Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 of things they buy has risen only 168?,. And while the U. S. worker's pay was climbing, his hours of work declined from Li9.4 to 110.1. Of late years, Sunerica's middle income group has literally exploded. And at the same time, the proportion of very rich and very poor has shrunk spectacularly. You see evidence of our new shared benefits in highways jammed with cars and colleges crowded beyond their gates. Yes, something has happened here unique in the world's history -- we are rapidly bringing the good life to all our people. This is a case history that confounds Marx. Turn now to the question of who supplies the capital that fuels ,'s prosperity and you discover another unique phenomenon. Almost every _aerican:has become a capitalist. Directly or indirectly, either through ownership of stocks or bonds or a farm or through money in savings banks, life insurance, pension funds, or even labor unions, he has funds at work helping io produce goods and services. These are facts nobody can dispute. Studying them, it seemed. evident to The _',dvertisin, Council that it was urgent that we Americans ceased being defensive about capitalism. Not to mention the word at all was playing right into Communist hands. The Advertising Council, therefore, proposed in a public address that our unique American capitalism be given a new, Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80B01676R003800180024-8 -9- descriptive name; and that this name make clear that our form of capitalism operates for the benefit of the many. That was the principal point -- the name must get across that our new capitalism is for the little man. Very deliberately, we suggested that 1,e the People liberate a word made famous by the American Constitution and by Abraham Lincoln -- and call our American invention People's Capitalism. lie felt this reclaiming of the word -tpeop:Le T s'1 -- which, like "neaceff and "democracy", has been debased by the Kremlin -- would provide the shock value needed to get the idea quick attention and discussion. As it tul:,ned out, the same idea also occurred to many others -- including Louis X. Ilenchini, a newspaper publisher in this city. In theory, this idea should start to erode the foundations upon which communism is built. For, if capitalism can benefit the many, then communism has nowhere to go. But this was only theory. The real test would come in the Communist's reaction. If nobody in Iioscow yelled ""Ouch", the idea probably didn't hurt much after all. Fortunately, the Russians couldn't keep their reactions a secret. Following use of the phrase by President Eisenhower and the U. S. Information Agency, the Communist propaganda mechanism immediately began to behave like a seismograph at an earthquake. The Daily ?darker, the captive radios of the satellite countries, Pravda, the Iloscow radio -- all began talking at once, the absurdity of the idea that capitalism could Approved For Release 2002/02/13 : CIA-RDP80B01676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -10- benefit the people. Dmitri Shepilov, then Foreign Minister and now in disgrace, said at the 20th party congress that People's Capitalism was as absurd "as fried ice". The Soviet humor magazine Kopatko published a cartoon showing a cloak labelled "People's" being sewed around the decaying form of capitalism. The magazine Kommunist also launched an attack. Soviet economist Eugene Varga was unleased to do a series of articles demolishing the un-I1arxian idea that the common man could be well off under car italism. On our side of the ideological chessboard, the realization began to dawn that we were at long last off the defensive. The ;American press applauded the idea of People's Capitalism in dozens of editorials. The U. S. Information Agency adopted People's Capitalism as a global theme and asked The Advertising Council to plan an overseas exhibit explaining some of its prin- ciples. This was done and the e_chibit was sent abroad on tour. Thus far, it has been shown to capacity crowds in Colombia, Guatemala, Chile and Ceylon. It is soon to show in India. The startling effect of this can be gauged by a few quotations from the foreign press. In Bogota, Colombia the newspaper La Paz said "the exhibit is the best reply to any campaign to disavow or criticize the high standard of living the workers of America enjoy." La i?eoublica commented that "The real revolution which man has had to bring about is no-,: achieved, but capitalism rather than communism has made it a reality." Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -11- The Guatemalan press waxed even more enthusiastic and talked about ,'a new economic era in the U. S.," "the people who refuted i,Iarx," and "a people which sakes :iarx look ri dicu~_ous." The `tmerican correspondent Robert U. Hallett, reporting from Santiago, Chile said "A public discussion is still reverberating in Chile over the recent ?People's Capitalism' exhibit... "Chileans are-prone to define capitalism as a completely exploitive system for the benefit of a few.. "The intent of the exhibit is to disabuse people of this trite concept of American society. Uany have called the showing the best the U. S. has ever had here. At least it aroused re- sounding public debate.." over on the other side of the world, in ,sia, similar reactions were being produced in socialist minded Ceylon. In Colombo, Ceylon, USTS reported that the exhibit "has awal_ened a tremendous interest in the il,icrican way of life, not only among the more conservative elements but also among..the leftist elements." / The mayor of / Dandy, the second city of Ceylon, remarked "The word capi- talism has meant to many of us something rather's exhibit..'Peoplets Capitalism' has shown us that.. capitalism is not as bad as we had been persuaded to think.' Now just one more anecdote which I think will amuse you. As a part of our of for. t;:, at economic education here in America, The advertising Council in cooperation with Yale Uni- versity held, about eight months ago, a Pound Table discussion Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -12- at New Haven -- a full day's discussion by brilliant minds on the American economy. Participating in the di cussion were distinguished Yale professors of economics, political science, history, conservation and religion, as well as representatives of business and labor. The discussion was summarized by Professor David Potter in a penetrating little book entitled "People's Capitalism." This booklet was circulated to the U. S. press and received an ovation. It was also sent to professors of economics, politi- cal science, etc. in `:,-me.rican colleges, and was distributed by the U. S. Information ?, gency to its posts overseas. The leading Ja)anese economic publication translated it into Japanese and re- printed it in full. At about this time, a mysterious stranger was found wandering about the corridors of the U. S. Information Agency in .'ashi_ngton. A receptionist went up to him and askrd if she ,.ii-ht help. He said, yes, that he had come for information on People's Capitalism. after she had answered his questions for several minutes, the young lady asked if he would be good enough to identify himself. He said certainly, that he was an officer of the Russian ;m bassy. 'almost before the young lady could recover her composure, a second caller came wanting information on p'eople's Capitalism. He turned out to be a correspondent from Tass, the Soviet news service. And he in turn was followed by a third eager gentleman,-- an editor of the Soviet magazine, U.S.S.A. Not very long after this, the world-wide Communist propaganda Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -13- apparatus began to snap, crackle and pop anew at People's Ca>i- talism. Leading Romanian publications devoted lengthy ~_ icles to demolishing the idea. The party chairman in Norway opened the ninth national congress by saying that there was no such t,' ing as people's capitali s.ri. The USSR published a 6)4 mag;e pam- plilet called "The Bourgeois Lie about People's Capitalism." The Bulgarian labor organ Trud attacked "The Theory of Peoole's Capitalism and its Reactionary Nature." Tlh Czechoslovak Communist party adopted an official resolution urging everybody to counter the people's capitalism t1-.e-,:le. But the most delicate compliment of all was that iloscoww also staged a Round Table. There were present professors of political science, economics and history, but no professors of religion, no business men and nobody from labor. The results of this discussion under the title of "The ilyth of People's Capitalism" is published in the Soviet =iag-azine "International Affairs." This journal has been circulated to intellectuals around the world. :nd it is melancholy to reflect that for every one intellectual who sees our booklet, nrohably thirty ti-li:Ll see the communist rebuttal. Howwever, thanks to the Voice of merica, ,adio Free Nurope and ;'.adio Liberation -- all of have i.n.oed the People's Capitalism theme -- reverberations are being felt iii. iioscoiii it- self. Not long ago the communist youth publication corr.lented that Soviet University students were being shaken by two react:i_onary ideas. The first was the extent of freedom in 1Iestern countries, Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -1)4- and the second was eeople's cap_talism. Out of all that has been written on the subject, it seems to me that the most perce_)tive comment from overseas ca,-ie from round Stevens, the Eoscow correspondent of the Christian Science Monitor. ,.J-riting from Moscow in June, iir. Stevens said: "People's Capitalism has recently been under heavy attack in the Soviet press and periodicals. "Indeed, few conoents...that have co_iie out of the ".;est in recent years have provoked such indignant...rebuttals... "Obviously, Communist ideologists could not ignore such a challenge without n-; their principles. If the claims of people's capitalism were allowed to stand, then many long-standing i iar.xist assumptions would have to be either jetti- soned or revised. Communism would be shorn of its most cogent arguments and appeal, not only abroad but at home." `.,'e Americans have made a beginning at stemming, the tide of artful propaganda. Tut it is only a beginning. If we are going to win this ideological struggle, we had better realize, all. of us, that regardless of transocean misai.le ideas are the ultimate weapon. ';c must cease uncle r-esti:iating our op ;onents. Be ;inning with "Pavlov and his dogs, ::.ussian scientists have studied be- havior patterns. The fiendish efficiency of their brainwashing revealed their deep knowledge of psychology. U,:e must finance the idea war properly. '.ie are out-advertised thirty to one. The U. S. Tnfor.,:ation Agency should have a budget Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8 -15- double its present size. :le must select a few truths about America and put our full force behind them. We have tried to tell too much, too seldom. Lastly, we must be far more aggressive and courageous in telling the story of People's Capitalism. This is '_mericats great contribution. No other society can adopt it ready-made, but nearly every new nation can benefit by our experience. In the 'eopl.e's Capitalism overseas exhibit there is a final panel which gives the visitor a parting; message. ,nd I, too, would like to leave you with this message. "Si.ncc~c the dawn of time, men have dreamed of a day when there would be more to life then a grinding struggle for food and shelter. They have dreamed of a society in whic?n. all men would be free with each nian as good as his neighbor. americans, like other peoples, have marched toward this shining goal. Thanks to good fortune, ingenuity, hard work, and respect for human dignity, they have achieved a dynamic new -:ay of life. It is, in truth, People's Capitalism -- Capitalism) 'of the .people, by the people, and for the people., It is man's newest ua,i of life. It is bright with as the way of the future. 11 Approved For Release 2002/02/13 : CIA-RDP80BO1676R003800180024-8