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Considering where Binswanger said this, I think it is what is nowadays called "throwing red meat to the base." I am personally no fan of his, but I don't doubt the authoritative nature of his statement.
The point of posting the quote is to demonstrate that what anarchists call the NIoF axiom is no such thing according to Objectivism. (This is one of many mistakes, if not distortions, made by posters on the libel poll thread.) My source of this quote is the "Libertarians" heading (the scare quotes are original) in the Ayn Rand Lexicon.
Another excerpt under that heading:
". . . I disapprove of, disagree with, and have no connection with, the latest aberration of some conservatives, the so-called “hippies of the right,” who attempt to snare the younger or more careless ones of my readers by claiming simultaneously to be followers of my philosophy and advocates of anarchism. Anyone offering such a combination confesses his inability to understand either. Anarchism is the most irrational, anti-intellectual notion ever spun by the concrete-bound, context-dropping, whim-worshiping fringe of the collectivist movement, where it properly belongs." (“What Can One Do?” Philosophy: Who Needs It, p. 202)
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The “libertarians” . . . plagiarize Ayn Rand’s principle that no man may initiate the use of physical force, and treat it as a mystically revealed, out-of-context absolute . . . . In the philosophical battle for a free society, the one crucial connection to be upheld is that between capitalism and reason. The religious conservatives are seeking to tie capitalism to mysticism; the “libertarians” are tying capitalism to the whim-worshipping subjectivism and chaos of anarchy. To cooperate with either group is to betray capitalism, reason, and one’s own future. 
