RE: THE PROGRAM OF PEOPLE'S CAPITALISM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003400020032-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 14, 2016
• Document Release Date: June 2, 2003
• Sequence Number: 32
• Content Type: LETTER

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To the Board of Psychological Strategy
Department of State
Washington, D. C.
RE: THE PROGRAM OF PEOPLE'S CAPITALISM
Gentlemen:
In almost every nation of the world there is the Communist Party,
working EXCLUSIVELY, for the Soviet Union. Each party is led by nati-
ves of that nation -- Togliatti in Italy, Thorez in France, etc. For-
mally, Soviet Russia has not other relationship with these various
national communist parties except in the ideological field. And yet,
they are doing their best to establish in every nation the same form
of government as in Russia.
What America opposes against this world wide communist movement?
The Marshall Plan, sponsored, directed and financed by the American
Government; the Atlantic Pact, sponsored, directed and financed by
the American Government; the United Nations, sponsored, influenced
and chiefly, financed by the American Government.
Furthermore, while the American doctrine advocates and proclaims
the democratic process of private enterprise, vice-versa, it is the
American Government who provides the Management and Capital of all
this foreign activity and therefore, it seems that communists are
right in stating that Government's Management and Government's Capit-
al MUST REPLACE private enterprise management and private investors'
Capital.
A group of naturalized Americans of Italian descent -- who prepar-
ed the following "PROGRAM OF PEOPLE'S CAPITALISM" -- call the attent-
ion of their American Government and their fellow American citizens
upon;what their relatives and friends from old countries write and say:
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that the American nation is wasting money, energy and time in the attempt
to stop communism and -- unless a more American pattern is followed in
our foreign activity -- this country of ours cannot stop many countrje-S
from falling, one after the other, in the Soviet orbit and risk ultima-
tely, an uncertain, destructive and ruinous third world war. To substan-
tiate their friendly advice, they point us the recent result in the May
and June Italian elections where communists advanced in popular votes
from 31% in 1948 to 36% in 1951.
However, we have in our own American backyard, in our own grasp,
the WAYS and MEANS to win this battle against communism all over the
world with loss strain upon our resources, less money and less risk. But,
we must stop to follow one mile behind the social-communist method. We
can offer an ideology so advanced and so perfect to make communist ideo-
logy obsolete as a sail-ship near a liner. And, we Americans can play
more easily and efficiently, the same cards as communists do. We can
have too,mq.ny people in other nations doing the fight for America --
and we can add, GLADLY and SAFELY -- exactly, as the communists are
doing the fight for Russia.
That's the substance of the proposed PROGRAM OF PEOPLE'S CAPITAL-
ISM MOVEMENT. A movement to be carried on through the organization
and function of its "Economic Parties", to be organized in each and all
nations and named the "American, British, French, Italian, etc. ECONO-
MIC SECURITY LEAGUE. This objective can be easily achieved if the Ame-
rican Government will do INFORMALLY, in behalf of the People's Capital-
ism ideology and its Leagues, the same things that the Russian Govern-
ment is doing INFORMALLY, in behalf of Communism ideology and its com-
munist parties.
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The blueprint of People's Capitalism is the result of years of
improvemerts of an economic theory, named "Hallesint System" and con-
ceived in 1894, at Les Halles of Paris, France, by an economist from
Genoa, Italy. In 1922, a group of professional and business people
organized themselves into an association to sponsor this theory and
which was called "UNIONE HALLESISTA ITALIANA" (Italian Hallesint U-
nion). Prince Don Mario Colonna was elected as its Chairman.
The UHI was persecuted and its members smeared and vilified by
fascist leavers in Italy and abroad, because it was opposed to the
totalitarian principles of fascism in both, the political and econo-
mic fields. The Hallesint theory advocated by the Unione Hallesista
Italians - which was re-organized after the war - is favoring the
"portfolio investment" over the "direct investment" through the dunct-
ioning of an "UNIVERSAL FOUNDATION"along the lines of the Universal
Postal System. The task of this Foundation is that of creating an
international trust fund, called "Hallesint Consolidates", made up
by stocks and bonds, issued by public and private enterprises in eve-
ry nation, and purchased with currency secured through the sale of a
standard security, termed "Hallesint Cartelle Consolidates ", to
actual and potential investors of every nation.
As every one can see, while the idea has merit, it is too far
ahead to be understood by the average mind of the people. As a matter
of fact, Guglielmo Giannini, the founder of the Italian political
party, "THE COMMON MAN PARTY", wrote in his party's newspaper "L'U0140
QUALUNQUE", March 14, 1951, this true remark: "The tragedy of the
sponsors of the Hallesint System is that they seem unable to make
themselves understood...Evidently, they need somebody who can be able
to explain more clearly their principles and objectives".
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Our group of American students of the Hallesint System did ca-
sually, in 1949-50, what Giannini suggests in 1951. We discovered
that all misunderstanding about the Hallesint ideology is caused by
the overlooking of a simple fact; so simple that usually it escapes
the attention of the most experienced eyes. It is the habit of call-
ing with its technical name of "Sodium Chloride", what is a daily,
business practice in the United States and which, vice-versa, would
be immediately grasped and understood by everybody in the world, if
this business practice would be called with its popular name of "Ta-
ble Salt". It is the common American business practice of buying
stocks and bonds by millions of people in every walk of life.
For instance, page 5 of LOOK Magazine, June 5, 1951, Is covered
with an advertisment of the Bell Telephone System which says: "ONE
MILLION PEOPLE have put their money in the Bell Telephone System".
That's just as calling this fact "Sodium Chloride". IT IMPLIES A PU-
RELY BUSINESS OPERAT IONI' But, if the same advertisement would read:
"TODAY, ONE MILLION PEOPLE OWN THE BELL TELEPHONE SYSTEM", then, the
same thing is called "Table Salt".
In fact, in saying ONE MILLION PEOPLE OWN the telephone business
IT IMPLIES A NEW CONCEPTION, a new Ideology, APPLIED TO THE RIGHT OF
PROPERTY. That's that of offering to the masses of people the opportu-
nity to become CO-OWNERS of the means of production and distribution.
Consequently, the property of the automobile factories, the steel mills,
the railroads, the mines, the banks, the stores, etc., and ITS INCOME,
can be shared amotng the people of the nation through the purchase of
stocks and bonds. So, the property of these private enterprises can be
"DEMOCRATIZED" instead of being "Nationalized" or "Socialized. These
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masses of people SHOULD BECOME the Co-Owners of means of production
and distribution instead of beeing a private or a Government's MONO-
POLY. And this operation, this ideology can be actuated without bloody
revolutions, without overthrowing the Government and in the interest
of every citizen of the Nation. That's the new ideology that our group
of American students of the Hallesint System have termed "PEOPLE'S CA-
PITALISM" so that everybody can understand. And it is with this typic-
ally American capitalist method that the world should be acquainted
through the practical propaganda of the People's Capitalism movement.
If this movement will be initiated in the United States, it would
be exploited by communist as a kind of "SUBTERFUGE" of the Capitalist
America's propaganda. However, it would be 100% more efficient if the
same movement of People's Capitalism would be started in Italy -- on
account of the Hallesint precedent -- and from that country irradiated
all over the world. That's the reason why we suggest that a group of
American people, familiar with this new ideology, be sent in Italy
with the informal assistance and support of the American Government.
In Italy, this group can secure the co-operation of the Unione
Hallesista Italiana -- they are about 20,000 members, mostly of the
intellectual and professional type -- and organize the first nucleus
of investors under the name of "LEGA ITALIANA PEP LA SICUREZZA ECONO-
MICA" (Italian Economic Security League). This "Lega" will be the Ita-
lian Economic Party sponsoring the American ideology of People's Ca-
pitalism to counteract the action of the Italian Communist Party,
sponsoring the Russian ideology of Communism. The program of the Lega
is that of working to achieve"ECONOMIC SECURITY" to the Italian people,
through ECONOMIC, rather than through POLITICAL moans, as suggested
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by the Communist Party.
The Lega Italians. per is. Sicurezza Economica will challenge the
t talian Communist Party in ITS OWN PSYCHOLOGICAL and IDEOLOGICAL FIELD,
In presenting the ideology of People's Capitalism the Legs. advocates
the idea that the property of factories, mines, railroads, ships,
banks, stores, etc., - briefly, the property and the income of the
means of production and distribution in each nation SHOULD BE CO-OTNN-
ED BY THE PEOPLE THEMSELVES. It should NOT BE a private monopoly as
it was the case of the old European Capitalist System. It shoulA NOT
BE a State monopoly, as socialists and communists advocate.
As the Italian Communist Party is pointing to the"Eldorado" of
Soviet Russia to prove the great advantages for the "proletariat" un-
der the Communist government, similarly the Lega Italians, per la Si-
cure zza Economica will point out the REAL PROSPERITY of America to
prove the soundness of the American economic, formula of People's Ca-
pitalism. If millions of American people in every walk of life OWN
the telephone business, the oil industries, the steel mills, the au-
tomobile factories and so forth, THE SAME THING CAN BE DONE BY MILLIONS
OF ITALIAN PEOPLE, in Italy; by millions of French people, in France,
and so forth. And the Lega SHALL EMPHASIZE that People's Capitalism
is the secret of the American prosperity and not their natural resour-
ces because other nations have the same resources but not the same
prosperity.
Through the newspapers, radio, lectures, personal contacts, etc.,
the Lega will appeal to all actual and potential investors to join its
rank and file. The slogan of the Lega is the following: "A MINIMUM A-
MOUNT OF SAVINGS, invested by the MAXIMUM NUMBER OF PEOPLE, is the
practical way to transform every PROLETARIAN into a PROPRIETOR".
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Simultaneously, from the Rome headquarters, the Lega will establish
connections with all Italian descent people, living in the United Sta-
tes, France, England, Argentine, Brazil, Chile, etc., and will ask
hCARN
them to cooperate the attention of people in the nation where
they are living,Pthe movement of People's Capitalism and help in orga-
nizing a federated activity, such as the "American Economic Security
League" in the United States; the "French Economic Security League", in
France, and so forth. Each national League to be Antirely independent
but having the same standard organization and t common interests
facilitated by a kind of mutual cooperation.
To help spread out this movement the following objective can he
introduced in the Program of the various Leagues. However, while great-
ly helpful, it is not strictly needed and it may be also considered
as a long-range objective.
This is the objective: in every Marshall Plar.'s countries, there
is a fund in national currency, 95% of which is pptt at the disposal of
each nation's government for reconstruction projects. This fund has bean
also the apple of discord for many reasons. Tie car. mention the case of
spaghetti and finished clothing sent to Italy, under the Marshall Plan's
label in the place of wheat and raw material. A fact which forced out
of business many Italian spaghetti factories and tailors shops with their
labor forces unemployed.
The "League" heath one of these Marshall Plan's countries can ad-
vocate a more practical and less controversial use of this 95% fund, or
a portion of it. They can ask the ECA directors and Congress of the Uni-
ted States, to employ this fund, or part of it, to build. up an INSURAN-
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CE FUND to reimburse eventual private investment losses. In other
wor+d.s , the same capital in national money needed in developing these
reconstruction projects -- which is today advanced from this ECA fund. --
will be advanced instead, by private investors of each nation, who will
become co-owners of these projects and share their income. if some of
these projects will prove, through their practicer+l operation, to be a
failure, then, these private investors will be compensated of their
financial loss by this Insurance Fund.
Of course, this suggestion amounts to the same as considering the
ECA's fund as an "outright gift". However, marry American leaders among
whom Undersecretary of State, William L. Clyton, stated that this fi-
nancial aid to foreign .people should be considered as "an outright
gift" rather than a loari, because "it is essential to our own securi-
ty". Furthermore, for the average American citizen these ECA funds
are already considered as an outright gifts.
If this suggestion could be worked out,
could be achieved. First, a great confidence
potential investors of every nation and a
pital will be available for each nation's
it will relieve a certain burden from the
several wonderfyl results
would be aroused among
larger flow of private ca-
recovery; second,
of the American
taxpayers, because instead of a total loss -- as it is the case today --
there will be only an eventual partial loss; third, it would facilitatt
ed immensely the spreading of the People's Capitalism movement in every
nation, and every member joining the "League" is s less potential com-
munist; fourth, it would greatly help in making foreign people 'stock
minded" and therefore, paving the road for a larger and more efficient
Point Four Program applicaticn and, finally, it would cut out the ground
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under one of the most formidable argument of communists in their
attempt to evidence the "imperialism" of America.
This is in fact, as we said, the fundamental reason why it is
advisable that this movement of People's Capitalism be irradiated
from Italy toward all nations of the world. The Italian capitalism
cannot be accused of "imperialist" design, because it is exactly,
as the famed Switzerland Navy.
All details are ready to be put into execution and a group of
American citiaans of Italian descent, very familiard with this plan
are ready to go immediately to Italy and start the work, the moment
the American Government is willing to help it informally, by putting
at the disposal of this group of people the rop r facilities.
Ve uL - yours
Louis X. MM:enchini
1080 Filbert St.
San Francisco,ll, Calif.
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