Call to Battle

"Most of Europe is going hell-bent for socialism. ... If we believe in capitalism as we say we do, it is about time we went hell-bent for capitalism."

These timely words from U.S. Chamber of Commerce President Eric Allen Johnston appeared last week in the New York Times Magazine. The battle is joined between capitalism and socialism, said Johnston, but most American businessmen do not know the shooting has started. They are still giving "little more than lip service" to the faith in private enterprise they profess. Economic freedom in the U.S., said he bluntly, is still "the privilege of a few individuals." If capitalism is to prevail, it must be possible "for every man to call himself a Capitalist." Every man must have a financial stake in capitalism.

Place a Bet. The wellspring of American capitalism, Johnston argued, is the American fondness for taking chances. "The human element in the capitalistic system is the recognition of man's innate urge to take chances, to be respected, to be recognized, to be a man and not a number. But the average American today is frustrated by his inability to bet on himself....The average American can count on nothing but his pay envelope, and in bad times, sometimes not on that....He feels that he bears no direct relation to the ultimate result of the profit system when he collects none of the net profits. . . .Obviously, all people cannot own businesses of their own, but . . .they can be in the business of their employers, and take chances on the profits with them."

Collect the Winnings. Eric Johnston's own method of letting his employes* take a chance was to set up: 1) a profit-sharing plan (this year the employes will divvy up 25% of net operating profit before taxes and dividends, in addition to their salaries and wages); 2) a "junior board of directors," composed of employes who make suggestions to management on company operations.

The plan is not new, nor the inevitable or feasible answer to every company's problems. But some such way, said Johnston, must be found to do the same thing throughout U.S. industry. He concluded: "Aggressive ambition on the part of the individual is the lifeblood of capitalism. The more of it we can churn into action, the better for us. The two systems of capitalism and socialism will compete throughout the world for the minds of men. The two systems are on trial. In the final analysis that system which provides the greatest benefit to the greatest number of individuals will win out. I'm betting on*capitalism."

*In Spokane's Brown-Johnston Co. (electrical supplies), Columbia Electric and Mfg. Co., and Washington Brick and Lime Co.

This file is automatically generated by a robot program, so reader's discretion is required.