September I I, 1942
DETROIT JEWISH CHRONICLE and The Legal Chronicle
3
PALESTINES WAR ECONOMY
When in 1939 the overclouded
political skies became still dark-
er , a definite feeling of uneasi-
ness spread in various sections
of the Yishub in Palestine. Peo-
ple r emembered with grave con-
cern the great suffering during
the first World War. At that
time the Yishub was small—about
65,000 souls in all—and it was
subject to starvation and pestil-
ence; but for the far-reaching
support of American Jewry, it
w ould perhaps have been com-
pletely wiped out.
To many the situation in the
Autumn of 1939 appeared even
more grave; the Jewish commu-
n ity had meanwhile grown seven-
fold, and the country was in a
very great measure dependent on
imported foodstuffs, while already
then shipping possibilities for the
m ost important of Palestine's ex-
ports — citrus — loomed in their
proper perspective. Moreover. the
disturbances were still prevalent.
Actually, the first months of
the war brought a severe crisis.
Panic-like circumstances caused
runs on banks and hoarding of
foodstuffs. All financial institu-
tions had temporarily to close
•
I,'Shono Tovo Tikosevu!
Harry R. Brethren
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By ERNST KAHN
Editor's Note:—The re-adjustments that the Jewish community of
5CO3000 has made in Palestine since the outbreak of World
War 11, particularly the contributions made by the agricultural
Population toward the war effort and how Palestine has become
an important center supplying food and materials for the
United Nations in the Middle East, are indicated in this article
written by one of Palestine's noted economists. Stressing the
importance of nationally-owned land and the uninterrupted
activity of the Jewish National Fund during the war, the
author shows that Palestine is capable, economically, of con-
taining millions of Jews after the war.
their doors, some of them for good.
The building and citrus indus-
tries, the two foremost branches
of employment in the country,
were brought almost to a stand-
still, resulting in an appreciable
rise in unemployment.
Before long, however, the coun-
try emerged from its temporary
paralysis, especially when the
disturbances came to a sudden
end. Agriculture was one of the
first branches of our economy to
overcome the deadlock. Now, one
might say, it became possible to
reap the fruits of the constant
and untiring modern settlement
policy pursued by the National
Institutions. With the help of
donations, but also by raising
loans, the Jewish National Fund
had with great perseverance, ac-
quired, by the outbreak of the
war, an area of 473,000 dunams
of land. The greater part of
this area was handed over to
settlers, whom the Keren Hayesod
and the other Jewish national
and semi-national institutions pro-
vided with the necessary re-
sources in order that they might
be able to produce in sufficient
quantities such commodities as
grain, milk, eggs, animals for
slaughter, fish, fruit, vegetables,
etc. Over a hundred collective
settlements (Kibbutzim) were al-
ready in being or in the course
of establishment. while an appre-
ciable part of the national hold-
ings had been allocated to
small-holders' settlements for ag-
richltural development. A part
from the Jewish National Fund,
the PICA also had allocated cer-
tain areas of its large holdings
for similar purposes. The lessees
now set to work at full speed
in an endeavore to increase pro-
duction of milk, eggs, cereals,
vegetables, bananas, grapes, fish,
etc.. and despite great difficulties
their success had exceeded all
optimistic expectations. Whereas
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only a few years previously Jew-
ish agriculture was confined al-
most entirely to citrus culture
which was fraught with danger
owing to its dependence on the
international orange market, that
chapter of monoculture in Our
agricultural history may now be
said to be finally closed.
One may say that even when
exports are renewed, citrus cul-
ture will no longer be a decisive
factor in the country's economy,
because today the value of Pal-
estine's mixed farming is already
as great, if not greater than that
of an average citrus crop, and
it is on the increase. Month by
month, greater areas are being
placed under mixed farming, and
methods of cultivation are stead-
ily improving. As regards the
area under cultivation, there has
been an appreciable increase of
national land holdings during the
first two years of the war. In
the course of this difficult period.
when almost the whole of the
Continent of Europe was lost to
us from the point of view of
donations, no fewer than 113,000
dunams were acquired, so that
with its present 600,000 dunams
the Jewish National Fund shows
an increase of 24 per cent over
its holdings on September 30th,
1939. Not even in peace time
could one ever point to such large
acquisitions over so short a per-
iod, and these new land purchases
were by no means limited to the
so-called "unrestricted" z o n e.
They were made possible in the
first instance by the great efforts
of the United States of America,
the British Empire and, in a pro-
portionate ratio. of Palestine it-
self. The increase of donations
from Palestine is particularly
pleasing from two points of vim.
In the first place it points to
the increased spending power cf
the country, and secondly, it is
eloquent of the great impression
made by the work of the Jewish
National Fund on perhaps the
most critical and intelligent ob-
servers of its work. Were Pales-
tine Jewry not so convinced of
the positive value of the Jewish
National Fund's work, its dona-
tion s would flow less freely. Tho
leaseholders of the Jewish Na-
tional Fund land have also con-
tributed in increasing measure
to the Fund's income. Income
from ground rentals rose during
the period 1940-41 from LP. 12,-
000 to LP. 16,000. That is sound
proof of their better financial
position. Provided normal devel-
opment in the future, this income
from leasehold rentals—without
presenting a substantial burden
to the individual settler—will
play an ever increasing role.
The gradual removal of the
center of gravity of Jewish agri-
culture from the citrus industry
to mixed farming has not only
improved the supply of home-
grown foodstuffs, thus minimiz-
ing the threat of hunger despite
the unavoidable sharp rise in
prices, but it has also helped to
strengthen the connection of peo-
ple with the soil, and safeguard-
ed the existence of an increased
number of Jews on the soil. In-
deed the old citrus plantations
did not facilitate the realization
of Zionist aims, for in the place
of Jews cheaper Arab labor was
constantly employed. From the
economic point of view that may
have been comprehensible, be-
cause in the few years before
the war the citrus planters were
only with difficulty able to eke
out their bare expenses f rom
their groves. But that system did
not conform to our ideals. Furth-
ermore, work in the orange groves
is required only for a relatively
short season. When the picking
is over, there is always appreci-
able unemployment in the coun-
tryside. Entirely different is the
situation in the mixed farming
sector. Here there exists hardly
any difference between employer
and laborer, and there is no dead
season. For this modern form
of agriculture does not rely on
any outside help; owner and work-
ers are nearly always identical,
•
be it in the Kibbutzim, the small-
holders' settlements or the fast
rising, middle-class settlemnts. No
fewer than 60,000 people now live
in these three types of settle-
ments, in addition to about 40,-
000 inhabitants living in the old
type of village.
It is not easy to say which
of these various types of settle-
ment is to be preferred. From
it social standpoint the answer
is dependent on personal taste.
Not every one can adapt himself
to the life of the Kibbutz which
involves great sacrifice of per-
sonal liberty. But the economic
success of these communal settle-
ments has been amazing during
the last few years, contrary to
predictions of so-called experts.
One previously heard two opin-
ions against this form of econ-
omy. On the one hand, one was
deterred by the unworldly and
unpractical idealism of the set-
tlers; on the other hand, it was
thought that the Kibbutz offered
a refuge for the lazy, in that
regardless of a member's personal
contributions to the Kibbutz, he
reaped equal benefits, namely,
free food, housing, clothing, etc.
These apprehensions have proven
unjustified, possibly because the
Kibbutz can exclude, at least in
theory, unsuitable members, but
alSo because in reality the really
skillful and diligent member is
distinguished and taken cogniz-
ance of. As for unworldliness, it
has long been shown that our
cooperative settlements have both
feet firmly planted on the ground,
and are as realistic as they are
venturesome. Affairs are planned
beforehand, new schemes worked
out and present undertakings im-
proved, and enterprises generally
meet with success. In agriculture
sound judgment is often much
See PALESTINE—Page 6
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