The Naked Capitalist

by W. Cleon Skousen

  And what has been the result?

  Dr. Quigley frankly admits that it has been rather awful in many respects. Summing up at the end of his book, he says, “Some things we clearly do not know, including the most important of all, which is how to bring up children to form them into mature, responsible adults....”5

  This is a shocking admission. It is a confession of total incompetence in a field where parents know there is a way to develop the vast majority of human beings into mature, responsible adults.

  In fact, it is this precise conviction which leads American parents to pay billions in taxes for their children’s education. Nevertheless, for many years both parents and teachers have sensed that strong, heavily financed left-wing influences have been doing their best to foster a climate of hedonistic nihilism among the schools. If these people had their way we would develop a prospective nightmare in our schools—schools without grades, without discipline, without prayers, without pledges of allegiance, without Christmas, without Easter, without patriotism, without morals, without standards of speech or standards of dress.

  Already, wherever they have taken over the educational system, we see the worst of their products intellectual guerrillas emerging from the universities trained in “participatory mobocracy.”

  Surely the nation deserves something better than this for the billions it is spending.

  Chapter Footnotes

  << 1. New York Star, August 18, 1948, p. 1.

  << 2. Felix Wittmer, Conquest of the American Mind, Meador Publishing Co., Boston, 1956, p. 39.

  << 3. E. Merril Root, Brain Washing in the High Schools, Devin Adair, 1959.

  << 4. E. Merril Root, Collectivism on the Campus, Devin Adair, 1961.

  << 5. Quigley, Tragedy And Hope, p. 1311, emphasis added.

  Chapter Nine

  The Slow Awakening of the Slumbering Giant

  Off and on throughout the past fifty years there have been explosive moments when the action of the subversive conspiratorial coalition almost aroused the American people to a conscious state of alertness and alarm.

  Dr. Carroll Quigley admits that nothing panics the international Establishment like the possibility of a threatened exposure.1 Whenever the public has become dangerously aware of the conspiratorial processes operating around them, the vast, interlocking power structure of the whole London-Wall Street combine has immediately shifted into high gear and raced to the rescue. Radio, TV, newspapers, magazines, government policy makers, college officials, intellectual pundits and other opinion molders in high places have all commenced a recitation of a carefully prepared “line” designed to pacify the public and put them back to sleep.

  It is interesting to watch Dr. Quigley discuss a number of these Establishment crises. As he writes about those few occasions when the American people were beginning to awaken. Quigley tends to abandon his role of historian and commences to engage in the most bitter kind of polemics against those people he calls the “middle class mentality” who had the audacity to sound the alarm and delay the Establishment’s march toward a global society of socialized authoritarianism.

  In the interest of brevity, we will only go back two or three decades to mention a few of the times when the American people almost awakened sufficiently to blow the Establishment out into the bright white light of public scrutiny.

  Anyone studying the Congressional hearings of the past 30 years will see how often there was an opportunity to turn the tide of history if enough Americans could have been awakened to insist upon it. Future historians will probably count it a tragedy that in each instance the Establishment was successful in soothing the public indignation so that little of their ground was lost.

  Here are a few headlines from the past.

  Harry Hopkins

  Harry Hopkins Gives Atomic Secrets and Uranium To Russia

  Right after World War II, Major Racey Jordan, expediter of Russian lend-lease, disclosed that his one-time boss, Harry Hopkins, had secretly secured the latest know-how on the atomic bomb as of 1943 and shipped it to Russia in a lend-lease plane which Jordan found to be loaded with black suitcases containing espionage files on the United States.

  When Jordan grounded this plane and flew to Washington to make an issue of this betrayal of U.S. interests he found himself threatened with severe disciplinary action. He was later ordered by Harry Hopkins to approve and ship to Russia (without making a record of it) several shipments of refined uranium compounds which experts later estimated to have been more than was necessary to produce an atomic explosion. The testimony of Major Jordan before a Congressional Committee is summarized in his book, From Major Jordan’s Diaries.2

  Naturally, this scandal caused considerable excitement for awhile, but today few people even remember it. Harry Hopkins died shortly after the war so the matter was never pursued. In 1949 Russia exploded her first atomic bomb, years ahead of general expectations.

  State Department Involved in Russian Take-over of Eastern Europe

  Within a short time after World War II, it began to become apparent that all of Eastern Europe was ending up under Soviet control and the promised freedom of those nations was being deliberately betrayed by certain Washington policy makers. These activities became so brazen that it caused Ambassador Arthur Bliss Lane to resign and write his shocking and authoritative book, I Saw Poland Betrayed.3

  David Martin wrote how the same kind of tactics were used to betray the anti-Communist forces who fought to liberate Yugoslavia. Martin called his book, Ally Betrayed.4 Thus it went up and down the Eastern European corridor. What Hitler lost, Stalin gained.

  It was very popular at that time for the Establishment’s liberal press to join with liberal professors and Left-wing congressmen to assure the American people that these countries were merely going “Socialist” to solve their problems and this would prevent the Communists from taking over. The fraudulent and fallacious nature of this claim led to the complete disillusionment of a prominent Socialist in the British Parliament named Ivor Thomas. He wrote a book showing how the Socialists made it easy for the Communists to take over in Eastern Europe. It is called The Socialist Tragedy.5

  George C. Marshall

  State Department Involved in the Communist Conquest of China

  General Albert C. Wedemeyer was the last commander of the Chinese Theater of Operations during World War II, and he has described in his book, Wedemeyer Reports,6 how he assured Chiang Kai-shek that the U.S. would support the Nationalist Chinese in setting up a democratic form of government after the war. But this never came about, because right at the time the delicate process of writing and adopting a constitution was in process, the State Department sent over George C. Marshall to tell Chiang Kai-shek that if he didn’t allow the Communist Chinese to immediately enter his government on a coalition basis, all U.S. aid would be terminated.

  General Wedemeyer wrote a comprehensive report to President Truman showing how this fantastic demand would ultimately lead to a Communist conquest of 600,000,000 Chinese. The State Department demanded that General Wedemeyer be “muzzled.” Chiang Kai-shek refused to accept the Communists in his government, and General Marshall fulfilled his threat. He wrote: “As Chief of Staff I armed 39 anti-Communist divisions (in China), now with a stroke of the pen I disarm them.” U.S. aid to China was reduced to a dribble. Both economic and military collapse became inevitable.

  We have already discussed the Establishment’s manipulation of the State Department through its Institute of Pacific Relations, which set the stage for the betrayal of China to a Communist conquest.

  By 1949 the whole mainland of China was in Communist hands and a bloodbath of genocidal terrorism was being poured out upon the people. What Americans had fought World War II to prevent the Japanese from doing to China, the State Department had encouraged Mao and Chao to go ahead and accomplish.

  The next task was to keep the American people from discovering how China had been betrayed to the Reds. It was necessary to cover the track
s of the IPR and its agents who were working inside the U.S. government. Dean Acheson, Secretary of State, wrote a notorious White Paper trying to put the blame on Chiang Kai-shek and saying the State Department had been helpless to prevent the Communist coup.

  However, Acheson’s ambassador to China, John Leighton Stuart, wrote a book called Fifty Years in China7 in which he admitted that he and his associates in the State Department could not escape their “part of the responsibility of the great catastrophe.” He repudiated the White Paper as a historical document and said it left out much of what really happened. Professor Kenneth Colegrove of the Political Science Department at Northwestern University went even further. He said Dean Acheson’s White Paper “was one of the most false documents ever published by any country.”8

  Alger Hiss

  State Department Official, Alger Hiss, Exposed as Soviet Spy

  Even before World War II, President Roosevelt had been warned that Alger Hiss was a top spy of the Soviet Union. The information came from no less an authority than the chief courier of the Soviet Union in Washington, D.C., who was getting ready to defect. His name was Whittaker Chambers.

  Unfortunately, President Roosevelt refused to believe the story or even check on it, so Whittaker Chambers went underground and eventually became the senior editor of Time magazine. Not until 1948 did the full exposure take place before the House Committee on Un-American Activities.

  Hiss had meanwhile risen to become a top official of the State Department, a closely trusted advisor to the President, and had been made the key-administrator in setting up the United Nations. As of 1948 he was President of the Carnegie Endowment for International Peace, having been nominated to that position by the chairman of the board, John Foster Dulles. Americans were tremendously disturbed that such a man would be accused of serving as a Soviet Agent.

  Throughout the hearings and trials which followed, Alger Hiss flatly denied the charges made against him by his former associate, Whittaker Chambers. Eventually, however, the famous “pumpkin papers” were turned over to the FBI and it was proven that the films of many highly secret documents had been copied on the Hiss typewriter in preparation for transmittal to Russia. Hiss was sentenced to five years for perjury. A comprehensive digest of the entire Hiss case may be found in Seeds of Treason by Ralph de Toledano.9

  Whittaker Chambers eventually wrote a detailed analysis of how he was trapped by Communism and what it did to both himself and Hiss. His book is called Witness.10

  The Korean War, the Firing of MacArthur and the Jenner Committee Report

  Once Dr. Quigley had pointed out that the secret policy of the Establishment was to push the United States into a collectivist one world society, it became increasingly. clear why so many White House and State Department decisions played directly into the hands of the Soviet strategists.

  Consider, for example the pattern of the Korean War. Once China had fallen, the hopes of Korea, Formosa and Southeast Asia depended on the post-war commitments of the U.S. to protect them. But in January, 1950, Dean Acheson announced that Korea, Formosa and the territory lying beyond were no longer within the “defense perimeter” of the United States. Within six months, Russia launched an attack against little South Korea, using the Communists of North Korea as a facade.11

  In all U.S. history, Americans had never fought a war as frustrating as the war in Korea. After a brilliant initial victory under astonishing odds, General MacArthur defeated and captured the North Korean army. He then commenced the mopping up process in North Korea and suddenly found his forces unexpectedly confronted by several hundred thousand “volunteer” Red Chinese.

  For over four months MacArthur was not allowed to tell the American people that we were engaged in a whole new war and the enemy was now Red China. Chiang Kai-shek pleaded for an opportunity to liberate his country now that the Chinese were involved, but he had to depend on U.S. aid and was forbidden to move. General MacArthur was not even allowed to bomb the Yalu Bridge over which the Red Chinese were pouring their men and supplies. Nor was he allowed to attack the Chinese bases beyond the Yalu.

  After four months, a Congressman wrote McArthur to find out why there were so many casualties when the war was supposed to be virtually over. The General frankly told the Congressman what had happened and when the Congressman read the letter on the floor of the House, it blew the political lid off of Washington. Within five days, General Douglas McArthur had been withdrawn from all commands in the Pacific.

  The war lumbered along for two more years, but after Stalin died and an armistice was arranged, it was found that the U.S. Generals and Admirals had been deliberately prevented from winning the Korean War, even when there were several excellent opportunities to do so. Little did Americans know that we were supposed to have lost South Korea.

  Owen Lattimore

  Owen Lattimore, a principal strategist for the Institute of Pacific Relations in the betrayal of China, had written an article in the New York Daily Compass, July 17, 1949, stating that the idea was to let South Korea fall, but not let it look as though we pushed her.

  On July 30, 1953, the famous Jenner Report came out of the Senate Judiciary Committee entitled: “Interlocking Subversion In Government Departments.” This was right at the time the Establishment was trying to hush up or discredit the McCarthy hearings so the Jenner Report was given an extremely cool treatment by the liberal press. Here are the twelve conclusions of the Jenner Report which carried with them tragic implications in view of what has happened during all the years since:

  “1. The Soviet international organization has carried on a successful and important penetration of the United States Government and this penetration has not been fully exposed.

  “2. This penetration has extended from the lower ranks to top level policy and operating positions in our Government.“3. The agents of this penetration have operated in accordance with a distinct design fashioned by their Soviet superiors.

  “4. Members of this conspiracy helped to get each other into Government, helped each other to rise in Government and protected each other from exposure.

  “5. The general pattern of this penetration was first into agencies concerned with economic recovery, then to war-making agencies, then to agencies concerned with foreign policy and postwar planning, but always moving to the focal point of national concern.

  “6. In general, the Communists who infiltrated our Government worked behind the scenes—guiding research and preparing memoranda on which basic American policies were set, writing speeches for Cabinet officers, influencing congressional investigations, drafting laws, manipulating administrative reorganizations—always serving the interest of their Soviet superiors.

  “7. Thousands of diplomatic, political, military, scientific, and economic secrets of the United States have been stolen by Soviet agents in our Government and other persons closely connected with the Communists.

  “8. Despite the fact that the Federal Bureau of Investigation and other security agencies had reported extensive information about this Communist penetration, little was done by the executive branch to interrupt the Soviet operatives in their ascent in Government until congressional committees brought forth to public light the facts of the conspiracy.

  “9. Powerful groups and individuals within the executive branch were at work obstructing and weakening the effort to eliminate Soviet agents from positions in Government.

  “10. Members of this conspiracy repeatedly swore to oaths denying Communist Party membership when seeking appointments, transfers, and promotions and these falsifications have, in virtually every case, gone unpunished.

  “11. The control that the American Communications Association, a Communist-directed union, maintains over communication lines vital to the national defense poses a threat to the security of this country.

  “12. Policies and programs laid down by members of this Soviet conspiracy are still in effect within our Government and constitute a continuing hazard to our national secur
ity.”

  This reviewer talked with Senator Jenner on one occasion following these hearings. He said: “We were accused of seeing Communists under every bed, but that isn’t true. What we saw were Communists IN the bed of nearly every Bureau in Washington.”

  Dr. Bella Dodd, former member of the National Committee of the Communist Party, told this reviewer that the Party estimated it had trained over 3,000,000 persons in Communist tactics and strategy by 1950, and that most of these had maintained a working relationship with the Party, or followed the Party line, even though many of them were no longer “dues-paying members.”

  Chapter Footnotes

  << 1. See, for example, Quigley, Tragedy And Hope, p. 954.

  << 2. George Racey Jordan, From Major Jordan’s Diaries, New York: Harcourt, Brace and Company, 1952.

  << 3. Arthur Bliss Lane, I Saw Poland Betrayed, New York: Bobbe-Merrill Co., 1949.

  << 4. David Martin, Ally Betrayed, New York: Prentice-Hall, 1946.

  << 5. Ivor Thomas, The Socialist Tragedy, New York: The Macmillan Company, 1951.

  << 6. Albert C. Wedemeyer, Wedemever Reports, New York: Henry Holt & Co., 1958.

  << 7. John Leighton Stuart, Fifty Years in China, New York: Random House, 1955.

  << 8. Institute of Pacific Relations Hearings, Part 3, p. 923.

  << 9. Ralph de Toledano, Seeds of Treason, Chicago: Henry Regnery, 1962.

  << 10. Whittaker Chambers, Witness, New York: Random House, 1952.

  << 11. For an inside story on the way the Russians ran the entire Korean War, see “Russians in Korea: the Hidden Bosses,” by Pawel Monat, Life magazine, June, 1960, pp. 76-102.