ECKERT CORRESPONDENCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R003800050022-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: February 4, 2002
• Sequence Number: 22
• Publication Date: May 16, 1958
• Content Type: MF

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! y 1956
RANDUM FOR: Mr.
a ssistant to the DCI
Eckert Correspondence
1. I have reviewed the attached correspondence from Mr.
Eckert. I do not know him personally and can shed no light on
relative importance in Pennsylvania politics.
2. However, it is clear that Mr. Eckert is a follower of
Henry George. The basic idea that Henry George had, which he
developed during the last century in the United States, was that
a tax on land value should be the sole source of public revenue.
I take it that since Mr. Eckert speaks in his letter as follows:
"the American economy is in need of fundamental reforms in order
to fulfill its mission in free society," that what he is saying
Is that the fundamental reform needed is a single tax based on
land.
Fs .n such circumstances it is fortunate that the Central
intelligence Agency has no responsibility in respect to the
economy of the United States. I say this because the "single
t ,xers" are as devoted to their ideas as the Communists to their's
and are swayed neither by facts, 1cic, or perception.
. I suggest, therefore, that the letter not be shown to
the Director and that it be placed in the appropriate pigeon hole.
lief. Economic Research Area
>'f l ce of Research and Re-Dorts
closure:
'c'_ert Correspondence
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ROOSEVELT %e ? ? --
EISENHOWER Pzaiez~;y--
, 4 4ao at Me 7WqYaa&&,W
acrd ~deudo-,~~to4fte'city
by
CHARLES R. ECKERT
President Henry George Foundation
of America
417 Grant Street, Pittsburgh 11, Pennsylvania
"America was set up that she might be different from all the
nations of the earth in this: that the strong could not prevent the
weak from entering the race; that the strong could not put the
weak to the wall. America stands for opportunity. America stands
for a free field and no favors." - Woodrow Wilson
"The greatest movement in the world today may be char-
acterized as the struggle of the PEOPLE against PRIVILEGE. Just to
the extent that the law grants special favors to some, to the ex-
clusion of others, do the people suffer from this evil. And the
greatest of all governmental favors, or special privileges is land
monopoly, made possible by the exemption from taxation of land
values." - Tom L. Johnson
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"People do not argue with the teaching of George; they
simply do not know it. The teachings of George is irresistibly con-
vincing in its simplicity and clearness. He who becomes acquainted
with it cannot but agree." - Leo Tolstoy
ROOSEVELT INEQUALITIES - EISENHOWER
PROSPERITY
A Look at Old Inequalities and Pseudo-Prosperity
"Men like Henry George are rare, unfortunately. One cannot
imagine a more beautiful combination of intellectual keenness,
artistic form, and fervent love of justice. Every line is written as
if for our generation." - Albert Einstein
"The land, the earth God gave to man for his home, suste-
nance and support, should never be in the possession of any man,
corporation, society, or unfriendly government any more than the
air or water, - if as much." - Abraham Lincoln
"In a democracy, the qualities of true leadership must com-
prise not alone loyalty to the popular will but also courage and
frankness in aiding the people to an understanding of basic Issues
and of basic choices in public policy." - Cordell Hull
"Whenever there is in any country uncultivated lands and
unemployed poor, it is clear that the laws of property have been
so far extended as to violate natural rights. The earth is given as
a common stock for man to labor and live on." - Thomas Jefferson
"The root cause of the world's economic distress is surely
obvious to every man who has eyes to see and a brain to under-
stand ... Permanent peace can only be established when men and
nations have realized that the natural resources should be a com-
mon heritage, and used for the good of all mankind."
- Philip Snowden
"Abolish special privileges and Government interference in
industry. Give to all equal natural opportunities - equal rights
to the inexhaustible storehouse of Nature - and wealth will dis-
tribute itself in exact accordance with justice. This, the ideal of
Henry George, is what I would place before our people instead
of the will-o-the-wisp of Socialistic despotism." - Max Hirsch
P RESIDENT Roosevelt, in his State of the Union Message,
in 1935, said, "We find our population, suffering from old
inequalities, little changed by past sporadic remedies. In spite of
our efforts, and in spite of our talk, we have not weeded out
the over-priveleged and we have not effectively lifted up the
under-privileged."
President Eisenhower, in his State of the Union Message,
in 1957, said, "The state of the Union at the opening of the
85th Congress, continues to vindicate the wisdom of the prin-
ciples upon which this Republic is founded."
The Declaration of Independence declares, "We hold these
Truths to be self-evident, that all men are created equal, that
they are endowed by their Creator with certain inalienable
rights, that among these are Life, Liberty and the pursuit of
Happiness."
The self-evident truths here enunciated are the embodiment
of the wisdom of the principles upon which the American
Republic was founded 180 years ago. These truths are the heart
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and soul of the Declaration of Independence. They are the,_
essence of the American Dream, the dream of equal rights for
all, equal justice for all, equal freedom for all.
Is the American Dream in process of realization? If so, then
we have the right to boast about the vindication of the wisdom
of the principles upon which the republic is founded. But if not,
then in the words of Archibald MacLeish, "It is time, and past
time to face the realities of our situation in the Republic. Every-
thing-our determination abroad, our courage and stamina in
the face of the terrible trial which lies before us, our eventual
victory in that trial-everything depends upon our undertaking
again the achievement of the American Dream of a truly free,
a truly democratic society, a society in which men shall be equal
in opportunity, equal before the law, not in word only, but in
fact, a society in which all men may share the security which is
now the privilege of some men only. Until we undertake that
task we shall not regain the sense of NATIONAL PURPOSE
which is our present and fatal lack."
The National Purpose of the founding fathers was to estab-
lish a nation wherein economic opportunities would be open to
all on equal terms and pave the way for the individual citizen
to receive the full share of his contribution to the productive
process, thus enabling him to assume the mastery of his eco-
nomic destiny and take his place in the American Economy as
a free, independent and self-reliant citizen. In short, to establish
a nation of free men in full enjoyment of the natural rights
bestowed upon them by Nature and Nature's God.
Are there any deep-seated inequalities in the American
Economy that prevent any inhabitants of the United States from
enjoying equally and fully their natural and indefeasible rights?
Charles A. Eaton, a Republican Congressman, speaking in
the House of Representatives on the 9th day of January, 1935,
undertook to answer this provocative inquiry. He said, "The
President of the United States says, 'We have not weeded out
the over-privileged.' This is a fateful statement for the Chief
Executive of the Nation to make. Whom does he mean by the
over-privileged? How does he propose to weed them out? Is
he going to weed them out by confiscation of their property?
Is he going to weed them out by taxing them on a different
basis than other citizens?
"How is he going to weed them out, and who are the over-
privileged? Let us ask a question or two. Supposing a gentle-
man is fortunate enough to have had intelligent ancestors who
invested in real estate, we will say for example, on Manhattan
Island, and now without having lifted a finger in productive
toil, or produced a dollar, he is able to enjoy the privilege of a
million dollar yacht, a city mansion, and a country estate. Does
the President hold this gentleman to be over-privileged? I think,
myself, he is. But how, by fair and constitutional methods, are
you going to get rid of him?"
The New Jersey Congressman in plain words and simple
logic, pointed out an over-privileged type that is a menace to
the well being of the American Republic. Much of ours, and the
world's woes and sorrows, is traceable to this type of privilege.
The great task confronting the American People is to
arrest and abolish its power of exploitation, to weed it out.
At the present time our population is suffering from the
inequalities noted in the State of the Union Message of 1935.
But at the opening of the 85th Congress, instead of a clarion
call for the American people to enlist in the battle to weed out
the over-privileged, they were regaled by the present Chief
Executive of the United States with a crooned lullaby that all
will be well and that America is on the highway of enduring
peace and permanent prosperity. But all is not well. There is no
assurance of either permanent prosperity or enduring peace.
The present high activity in the field of production had its
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origin in the rumblings of World War II, back in 1939, and
since, during the years has been kept active in various degrees
of intensity by artificial means, and that is the situation today.
Prosperity brought into being by horrible catastrophes such as
war, and stimulated and maintained by artificial means, is not
self-contained, and in the nature of things is doomed to failure.
The present economic prosperity is war prosperity. It is dis-
tinctly the result of the government's spending huge sums of
the taxpayers money for National defense, superinduced by the
free and reckless use of consumer's credit. The claim that the
unprecedented peak in our economic prosperity is due to the
loyal observance of the self-evident truths enunciated in the
Declaration of Independence, has all the earmarks of economic
ignorance or political sophistry.
An economic system, if it is to be healthy, natural and
enduring must function within the framework of the natural
laws of economics. It must be built on the firm foundation of
Justice-the justice founded on the rights bestowed by nature
upon man. In short in the full recognition and acceptance of
the self-evident truths enunciated in the Declaration of In-
dependence.
No, the prosperity of the war years, of the years in between
and the present prosperity is not founded on Natural Justice.
It is neither healthy nor natural, and the peace is a fickle and
precarious truce, vibrating with world wide tension and un-
easiness.
The inequalities of 1935 have not been weeded out. Then
as now, the American economy has been and is saturated and
honeycombed with privilege-privilege in the sense of, an im-
munity, or an exemption conferred by special grant in dero-
gation of human rights, as a land title, a franchise, a tariff, a
patent, and other governmental concessions, and consequently
the American Economy, or social order, is monopolized and
subsidized, tax-ridden and debt burdened, refereed, and cor-
ruption breeding.
Is this the type of nation or social order for which the
founding fathers pledged their lives, their fortunes, and their
sacred honor?
It is time, and past time, for the American People to take
a long hard deep look at the facts of the American Economy
so as to get a clear, full and comprehensive picture of its opera-
tion in the field of production and distribution, to the end that
its inequalities and basic wrongs may be exposed and weeded
out.
As noted, all is not well in the American Republic. Its
economy is not healthy or natural. It is cursed with privilege
and monopoly. The distribution of the National income is a
monstrosity and its fruits a monstrous injustice. This fact is due
mainly to the monopoly of land and its attributes such as water,
air, oil, mineral and all creative forces and processes in the
material universe.
Land monopoly is the basic and primary cause of America's
unstable and precarious economy, hence its (land monopoly)
powers of evil must be destroyed and weeded out, and this end
can be achieved by the simple process of shifting the base of
taxation from wages and income to the taxation of land values,
or in terms of political economy, to collect for public use the
rent of land. Here is the answer to the question of the New
Jersey Congressman, "How are you going to get rid of the
over-privileged who enjoy the privilege of sporting a million
dollar yacht, a city mansion, and a country estate without lifting
a finger in productive toil?"
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A FOUNDATION DEDICATED TO THE
CAUSE OF JUSTICE AND LIBERTY
"Justice is founded in the rights bestowed by nature upon man.
Liberty is maintained in security of Justice."
Inscription on Dept. of Justice Bldg., Washington, D.C.
A non-profit Corporation whose purpose
is to stimulate interest in the study
of the Science of Political Economy.
417 Grant Street
Pittsburgh, Pa.
Chartered by the University of the
State of New York
50 East 69th Street
New York 21, New York
Offers free courses, as a public service,
in Fundamental Economics and Social
Philosophy. Full details on request.
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CHARLES R. ECKERT
ATTORNEY AT L
Mr. Allen W. Dulles
Director of Central Intelligence Agency
Washington, D. C.
Dear Mr. Dulles:
I I C> --al-4-So
May 5, 1958
The San Diego Union of April 29, 1958, under a
Washington dateline quotes you as having said, in a speech
before the U. S. Chamber of Commerce, as follows:
"The CIA Chief predicted Russia will avoid
war in the foreseeable future and will wage the
decisive cold war battles in the economic and
subversive arena."
This sounds like a reasonable prophecy and one that
ought to alert the leaders of the U.S. to the danger of the
Russian economy surpassing the American economy in the pro-
duction of the essentials of a decent standard of living.
But be that as it may, the American economy is in need of
fundamental reforms in order to fulfill its mission in free
society.
Enclosed is a copy of a pamphlet "Roosevelt
Inequalities--Eisenhower Prosperity" and copy of the Bigelow
letter to me in 1931, reporting a survey of conditions and
activities in Russia.
Yours sincerely.
CHARLES R. ECKERT
CRE:ec
Enc.
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On the Volga, Russia
Aug. 11, 1931
dear Eckerts-
Here I am 1500 miles down the Volga from Moscow. Am leaving Russia in
about 10 days. Will have had a month's trip here, with stays in Leningrad,
Moscow and other industrial centers and agricultural experiment stations.
a different opinion about it every day. It is certainly the most
audacious undertaking in history. For millions of peasants such as I have seen,
Communism can be only another Tsar. More than one generation will have to die
before they are reconstructed. But in spite of that, one is amazed at the
thoroughness of the revolution. Not a millionaire is left. Not even a moderately
well-to-do-class. There is no income except wages for work done. The lowest
rate of pay is 69 rubles a month, or 34 dollars. The highest rate is 400 rubles
or 200 dollars a month. The wage differential may be as high as 1 to 6. We
have about the same variation between skilled and common labor. But here there
are no high salaried men,, except the foreign engi,neeers, who, of course,, have
attractive terms offered them. There are no landlords to draw rent. There are
no capitalists to draw interest. There is no stock exchange. There are no
profiteers. The Government monopolizes all trade and banking and industrial
processes. Everyone works for the Gcverrimeent. The Government fixes wages and
prices. It determines how much shall be left to the people in wages, how much
shall be withheld for capital funds, and in what industries their funds shall
be invested. If there is a scarcity of anathing it is rationed. With us the
price goes up. Those who have money buy, and those who cannot afford the price
go without. In Russia it is doled out in sparing amounts. The theory is that all
work, and all got their share, and that as the nation increases its production
the share will increase for all. Hence there is no foolish talk, as with us about
the machine displacing men. They are crying for machines. Since each man's
income depends on the total product, they cannot o4mceive of over production.
Neither is there any rivalry here for precious jobs. It is not jobs they are
crying for but men for the jobs. Many factories are working in 3 shifts, 24 hrs.
a day. They could use millions of American workmen. Their handicap is that they
have to draw their labor supply from the raw peasantry. Factories have as high
as 70% of peasants.
It bowls one over. It knocks much of our political,economy into a
cocked hat. Given 25 or 50 years of this, I cannot see why Russia should not be
one of the richest and most powerful nations on earth.. Indeed if their experi-
ment succeeds, a. similar policy will be necessary for survival in all the
nations.
There are, of coursee, weak points in the policy - and it would be rash
to predict its success. They are trying hard to introduce methods of management
to take the place of the check up that the interest of investors holds under
private capitalism. They claim to be succeeding. But they may never hope to
equal an American factory in efficiency. While we are efficient in the individual
factory, we are chaotic and wasteful in the extreme in our lack of social, manage-
ment. They think the advantages bulk large in their favor.
There is much "boot-leg" trade. While this is frowned on, it perhaps
is tolerated because it may relieve to some extent the tension. For the Govern.
meat policy is to stint the Russian people to the point of endurance,, so that
it may have the means to pay for factory equipment. They are appealing to the
public to stand it, just as we sold liberty bonds. They say that the success
of their experiment will be too dangerous a thrust at the capitalist powers to be
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tolerated. They expect attack. They say that a primitive agricultural country
cannot hope to most a highly industrialized country in modern war. The 5 Year
Plan is in part at least military preparedness. The red army is the darling
of their hearts. If it does not carry an Evangel' s sword through Europe as
Napoleon's army did, they at least expect it to meet the armies of a "decadent
capitalism" as they say.
You sense this, that hard as Russian life is at present, the
people have hope. They expect steady improvement from now on. They feel that
the 'country is theirs. That they are masters of their own destiny. This
will make their red army a hard nut to crack, if Europe or erica does try
its teeth on it.
But there is no hope in our life-time for any such drastic
revolution America. We must take the route of Ec?ncmic Evolution through
education and the development of social mindedness. But we shall feel the
Russian pressure. We shall have to set our house in order. Our present
barbarism cannot go on. You and I still have a great work to do. It seers to
me that the time is fast ripening for a new blossoming of democracy and
attacks on the monopolistic elements which make capitalism master instead of
servant.
Remember me to Mrs. Eckert, and accept my beat wishes for your
health and happiness.
Cordially,
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