No it doesn’t. Truth is identified, not determined, by observation and reason. According to Objectivism, rational self interest determines morality, not truth.
"Capitalism is the only system that can honestly determine man’s interaction with man."
Wrong. Capitalism does not “honestly” determine mans’ interactions”, it’s simply a description of the only “moral” economic system.
"Chambers pointed out that materialism as an ethic comes to grief in practice."
Materialism is not an Objectivist value. Chambers is confusing that with Objectivists' claim that money is the most “honest measure” of value, as opposed to trading favors or hinting at dept after large gifts.
"If there is no organizing force except self-interest, self interest soon becomes self pleasure. "
Rand agrees. She saw her organizing force or greater cause as perusing the ideal of man as a heroic being. She said life would be un-interesting otherwise.
"Some believe Chamber’s critique began the delineation of conservativism from objectivism. "
That there was ever more of an Objectivist-Conservative alliance than there is today is news to me.
Thank you elfman2. I posted what I read in the book and in Chambers essay. At least what I thought they said. Thanks again for your corrections.