20
Modern Equipment, Techniques
Will Raise Productivity in Israel
By P. BERNARD NORTM AN
.
—
THE JEWISH NEWS
ZOD Mobilizes for "Z-Day"
Membership Drive. Sunday
, Friday, January 6, 1950
German Students Protest
Nazi Atrocity Film
MUNICH, (JTA) — German
showing of a Polish filN,clealing
with Nazi atrocities. in Poland
during the war, including the
tragedy of the Warsaw ghetto.
The film is sponsored jointly
by Jewish and Christian liberal
groups in Germany who are at-
tempting to reeducate the Ger-
man people. The students
walked out in the middle of tihe
film jeering at it.
ment) ; the other 50 per cent •
backing of these notes could
consist of Treasury bills and
other government paper, repay-
able within one year, as well as
commercial paper.
Issue Securities
In June 1949, however, the
•
BUILDING INDUSTRY OFFERS INVESTMENT
OPPORTUNITIES
(This is the fifth of a series on Israel's
economy based on facts published by
the economic 'department of the Jewish
Agency for Palestine, 16 E. 66th St.,
New York 21.)
:JP
The high cost 'structure of the
Israel economy is one of the
most vital questions facing the
investor- today. It is one of the
foremost problems facing Israel
industry.
Because of wartime shortages
and the inevitable heavy utiliza-
tion of Israel machinery and
equipment hi recent years, a
large percentage is in need of
replacement.
Israel's productivity, low in
comparison with the United
States and Great Britain, is still
far in excess of that of other
Middle East countries and of
nlany European countries.
Government, labor and em-
ployers recognize the need for
raising productivity, and are
making important progress to-
ward this end.
Accept Piece Work Rates
The Histadrut, at a recent
conference, accepted the prin-
ciple of piece-work. rates and
also agreed to government re-
quests for cooperation with
management to raise the general
level of plant efficiency and to.
form labor-management com-
mittees to work out production
norms and bonus systems.
Investors who introduce new
equipment and modern tech-
niques will raise productivity.
With more efficient machinery,
management and labor, - new in-
vestors:will be able to make the
most of existing opportunities.
Credit Institutions
In Israel banks are less spec-
ialized than in the U.S. and
many are of the department-
store variety. Israel has many
banks but their resources are
not sufficient to meet all the
credit needs of the country.
Local banks number about 20; in
addition, there are four foreign
banks and about 80 cooperative
societies, plus a number of spec-
ialized credit institutions.
Banking and financial insti-
tutions in Israel are unusual in
that they are a mixture of in-
dividually and corporately-
owned private banks, coopera-
tive and labor banks. The pri-
yate type dominates.
Other banks are owned and
controlled by a combination of
private and cooperative groups
The Histadrut (trade union fed-
eration) participates in banking
either by itself or in partner-
Ship with private capitalists or
with the Jewish Agency.
Among Israel's score of com-
mercial banks, the Anglo-Pales-
tine Bank is by far the largest,
holding about two-thirds of all
deposits in Israel and carrying
on the most extensive commer-
cial banking operations in the
Country.
Discount Transactions
Local paper can be rediscount-
ed at the Anglo-Palestine Bank.
Rediscount transactions must be
approved by two Controllers, one
appointed by the government
and the other by the bank.
The Anglo-Palestine Bank con-
trols two subsidiaries for long-
term investments: The General
Mortgage Bank, which lends
money on the basis of urban
mortgages and the Anglo-Pales-
tine Bank Investment Company,
an investment trust, buying
securities of corporations. In
addition, the Anglo-Palestine
Bank controls Otzar Lataasiya,
which extends credit up to 15
years to industry, and Otzar
Lahaklaut, which grants credit
to agriculture from 8 to 15 years.
. Israel's other major banks in-
clude the Palestine Discount
Bank, Ltd.; Barclays Bank (D.
C. & 0.) Jacob Japhet Bank &
Co., Ltd.; Ellern's Bank, Ltd.;
I. L. Feuchtwanger Bank, Ltd.;
Kupat-Am Bank, Ltd.; Mizrachi
Bank, Ltd.; the Ottoman Bank;
the Workers' Bank, • Ltd.; the
Holland Bank Union and the
Palestine Corporation.
The many credit cooperative
societies act as a kind of savings
bank for small depositors and
make all kinds of small loans to
their members.
Long-Term Credit
Long-term credit is financed
either by a bank or a group of
banks, or by private individuals
who act both as investment
bankers issuing new securities
and as brokers for existing secur-
ities. •
Mortgage credit in Israel,
which is especially limited, is
granted through private banks,
agents of individual capitalists,
or such financial institutions as
the General Mortgage Bank of
Palestine, established by the Ke-
ren Hayesod (Palestine Founda-
tion Fund) and controlled and
run by the Anglo-Palestine Bank;
the South African Binyan Ltd.;
and the Palestine Mortgage and
Savings Bank and Tephahot,
Ltd., for second-mortgage mon-
ey. Insurance companies, to
some extent, also grant long-
term mortgage credit.
Specializing in long-term
loans for all types of public
works and large utility projects
is Bizur Ltd., owned jointly by
the Jewish Agency and the Hist-
adrut. /For agricultural purposes,
credit-is provided by Nir Ltd., of
the Histadrut, and the Agricul-
tural Mortgage Bak and Pasa.
Knesset authorized the Treas-
ury to issue 15-year securities,
guaranteed by State - owned
property, to cover issues of Is-
rael/banknotes, and approved an
amendment to the charter of
the Anglo-Palestine Bank issue
department permitting it to use
the new securities as cover for
currency. This move came after
the recent Anglo-Israel finan-
cial agreement, under which the
Bank of England unfroze sub-
stantial Israel assets which were
formerly used gs backing for
Israel currency and are now to
be released for spending.
Israel signed its first agree-
ment with the Export-Import
Bank of U.S., on Feb. 17, 1948,
for a $100,000,000 loan for a
period of 15 years. The purpose
of the loan "is to provide credit
for basic industrial, agricultural,
transportation, housing and tel-
ecommunication equipment—ex-
clusively for constructive pur-
poses.
TZe loan has furthermore _per-
mitted Israel to obtain addition-
al credit from other sources. For
example, a certain amount of
the proceeds from this loan has
been designated by Israel for use
in conjunction with automotive
credits .granted by American
firms such as Ford, General
Motors, White, and Dodge. Such
agreements are also being con-
templated with other American
firms.
(The sixth and final article in this
series will contain information for
potential investors, such as import, ex-
port, and capital transport controls,
taxation and customs duties in Israel.)
Past presidents of the Zionist Organization of Detroit who
are either actively participating in or have endorsed the mem-
bership mobilization drive on "Z-Day" Sunday, Jan. 8, are left
to right, seated: MAURICE H. ZACKHEIM, LEON KAY, pres-
ent incumbent, BENJAMIN WEISS, chairman of membership
committee; DR. A. M. HERSHMAN; standing: .PHILIP
SLOMOVITZ, ABRAHAM COOPER, RABBI MORRIS ADLER,
LAWRENCE W. CROHN, RABBI LEON _FRAM, MORRIS M.
JACOBS, JAMES I. ELLMANN. Not pictured are past presi-
dents Dr. Noah Aronstam, Dr. Harry E. August, William B.
Isenberg and Robert Marwil. The late Joseph H. Ehrlich and
Simon Shetzer also were ZOD presidents.
* *
.
Past presidents of the Detroit
Zionist Districts have issued a
call to the Jewish community
of Detroit for active participa-
tion and 100 percent support of
the membership mobilization
drive, "Operation Z-Day," to be
held all day Sunday, Jan. .8.
Ben Weiss announced that the
final briefing for captains and
workers took place at the home
of Rabbi and Mrs. Moses Lehr-
man Jan. 5.
The "Z Day" breakfast, pre-
liminary to the city-wide drive,
will be tendered all captains
and .workers at the Mayfair at
10 a.m. Sunday. The principal
speaker will be Rabbi Leon I.
Feuer of Toledo. Rabbi Feuer
is chairman of the committee on
religious education of the Central
Conference of American- Rabbis
and a vice president of the ZOA.
Einstein Theory 'Tells All'
Currency and Exchange
The Israel pound (IL), which
replaced the Palestine pound
(LP) issued by the British Man-
datory government, became the
legal tender in Israel on August
17, 1948. The import and export
of Israel, currency is strictly reg-
ulated by the government.
There is no free foreign ex-
change, and transactions in for-
eign currency are subject to con-
trol by the Controller of Foreign
Exchange, who allocates the cur-
rency in accordance with in-
structions received froM the
Minister of Finance. The value
of the pound is fixed at $2.80
for capital remittances and
commercial transactions.
Under agreement with the
State, the management of the
new currency of. Israel is in the
hands of the Anglo-Palestine
Bank. To perform this function,
the bank has established an in-
dependent Issue department,
which has the sole right to is-
sue Israel's paper currency until
1951.
Until recently, the issue depart-
ment was entitled to issue Israel
pounds provided the amount
issued was covered by at least
50 per cent in gold, foreign ex-
change, or Palestine pounds
(currency of Mandatory govern-
JNF Rejects Plan
To Merge Funds;
Epstein to Speak
Elias M. Epstein of Jerusalem,
on his arrival in New York, an-
nounced that the Keren Kaye-
meth Lelsrael, of which he is
overseas director, has rejected
a _proposal made for the merg-
ing of the two major funds of
the Zionist movement — the
Jewisli National Fund and the
Keren Hayesod.
Epstein, who is on a lecture
which will take him to all parts
of the country, is consulting
with Judge Morris Rothenberg,
president of the Jewish National
Fund of America and acting na-
tional chairman of the United
Palestine Appeal, • and with
other- leaders of the Zionist
movement. He will address the
Zionist Organization here on
Jan. 19. •
The reasons given by the
supreme authority of the Keren
Kayemeth for the rejection of
the proposal to merge the two
Zionist funds are:
"1. This would tend to reduce
the significance and the func-
tion of the Jewish National
Fund which has not yet been
fully implemented, and may
even lead to its disappearance
notwithstanding that the pro-
posed united body might retain
the name of Karen Kayemeth
Lelsrael.
"2. It would lead to a curtail-
ment of receipts.
The operations of the Jewish
National Fund are defined as,
(a) land purchase; (b) land de-
velopment; (c) provision of
water supples, and (d) af for-
estation.
Stop Israel Residents
From Travel to-Germany
TEL AVIV. (JTA)—Israel citi-
zens will not be allowed to travel
to Germany, according to a de-
cision of the Ministry of Immi-
gation which stipulates that
Israel passports will be valid for
all countries with the exception
of Germany.
The announcement noted that
passports valid for Germany will
be issued in "cases of public in-
terest" as well as .in cases where
the individual wishes to return
to Germany permanently. In the
latter event, return visas for
Israel will not be issued.
Clapp Terminates Duties
As Head of UN Mission
_
WASHINGTON, (JTA)—Gord-
on Clapp, who is terminating his
HERE IS PART of Dr. Albert Einstein's new "generalized theory duties as chairman of the Unit-
of gravitation" for whatever you can make of it. The Princeton ed Nations Economic Survey
professor presents it as the sum total of three decades of work, Mission for the Middle East, sub-
a concept to explain what goes on everywhere, from inside an mitted his final report to Presi-
dent Truman.
atom to the limits of the universe.
—International Soundphoto