Israel Industry Serves Its Farms

What Will Israel Be Like in 1960?

Expansion Based on. Funds to Be Realized
Through $500,000,000 Israel Bond

At the time that the 'State of years for its complete realiza- made possible the establish-
Israel was established, more tion, Israel will have a well- ment of modern agriculture.
than 80% of its population was distributed population, with Others settled in the towns
concentrated in the narrow homes convenient to places of and, to a more limited extent,
coastal strip extending from enployment and to sources of entered into commerce, indus-
Haifa to Tel Aviv. A special ef- food supply.
try and crafts. In the second
fort is now being made to over-
and third groups, there were
come this unfavorable distribu-
large numbers of skilled work-
tion. Expansion based on funds
ers and immigrants, with capi-
realized through the $500,000,000
tal resources. Their entry
State of Israel bond issue will
helped Israel's industry ad-
be developed in such a way as Israel's population has al-
vance from the stage of a
to help meet this problem.
ready passed the 1,400,000 mark. small-scale operation to a
A plan for the distribution With more than 600,000 addi- modern, large-scale effort.
of the population has been tional immigrants expected dur-
The immigrants who have
worked out, based on the di- ing the coming three years, the been arriving in the current pe-
vision, of the country into 24 total by the end of 1953 will be riod include relatively few per-
"planning regions." Each of well over 2,000,000. This period sons with skills or capital. They
these regions is designed to of rapid growth will also mark are chiefly unskilled and inex-
support an estimated average a vast industrial and agricul- perienced. Through reha.bilita-
population of 75,00 to 100,- tural expansion, to be financed tion, training and various forms
000, and to provide them, with in major part by the $500,000,000 of assistance which they have
sources of livelihood as well as State of Israel bond issue.
received in Israel, they have
the necessary region services
Israel's history of rapid in- been prepared to enter produc-
and amenities. The "planning
crease in population is with- tive activities in industry, agri-
regions" have been mapped
out parallel in any other culture, construction and other
A skilled machinist at a factory in Israel examines parts
out in accordance with eco-
country in modern times. In branches of the economy.
for agricultural machinery. The manufacture of agricultural ma-
nomic resources, geographical
By the end of 1950 approxi-
1919
there were only 65,000
chinery and equipment constitutes a close link between Israel's
conditions, c o m m u nications
mately 80 per cent of the 511,-
Jews
in
all
of
Palestine.
When
expanding industrial and agricultural economies. Continued
factors, etc.
State of Israel was proclaim- 000 newcomers who had entered
large-scale growth in both fields is the major objective of the
In each district, the rural ed in May 1948 this number Israel since the proclamation of
$500,000,000 State of Israel bond issue, which will be floated hinterland is to be served by had increased to 655,000. Since the State, were absorbed into
urban centers representing the the achievement of independ- its economy, either fully or in
in the United States about May 1.
seat of regional administration, _ence immigrants have contin- part The complete absorption
the centers of its industry and ued to flock to the shores of of the others, and of thoSe still
commerce and the headquarters the Jewish State at the rate to arrive, will be a significant
of its education and health in- of 10,000 or 15,000 per month; achievement of the development
stitutions.
in some months as many as program which will result from
By BARTLEY CRUM
In the planning of new towns, 30,000 have arrived.
Israel's forthcoming bond issue.
Editor's Note: Mr. Crum, noted attorney ., author, and a population of 50,000 has been Approximately 80% of the
former member of the Anglo-American Committee on. Palestine, adopted as the optimum size population increase during the
presented the following statement on his regular Weekly radio most compatible with the eco- past 30 years resulted from im-
nomical operation of public migration. The flow of immi-
program in New York last Sunday.
services and the fulfillment of grants was concentrated in five
the town's cultural, economic major waves, the first, bringing
The Knesset, Israel's Parlia- * more people. Israel bonds in and social functions. about 35.000 people during the
ment, this week approved a law the United States will finance
The regional towns intended years 1919-1923; the second, be-
authorizing the flotation of a the expansion of present in-
for immediate development in- binning in 1924 and lasting
Iron and steel—the basis of
$500,000,000 bond issue in the dustry and agriculture and
elude Beersheba, as the re- through 1931, which brought any modern industrial economy
United States.
the development of new farms
gional center of the Negev; 82,000 persons, three-fourths of —play an important role in
This is exciting news. With and factories. The State of
Migdal Gad-Ascalon as a new them from Eastern Europe; the Israel's plans for expansion dur-
the " Independetice Issue" of Israel Bond Issue will enable
port city for the southern third, from 1932 to the outbreak ing the next three years. The
bonds, which will be floated here Israel to exploit the natural
coastal region; Upper Affuleh of World War II bringing in development of new facilities
in May to coincide with the An- resources of the country for
as a new residential develop- about 225,000 new immigrants, for the manufacture of iron,
niversary of Israel's Independ- home use as well as for ex-
ment serving the valley of Es- the majority of whom were of steel and their products will
ence, Israel has embarked upon port.
draelon; Tiberias, an exten- Polish and Central European contribute immeasur ably to
a program designed to render
Israel bonds, which will be sion of the present town to origin; the fourth wave, from Israel's growth as a self-suffi-
offered here about May 1, are be situated at a much higher the beginning of World War II cient country.
of two types—savings bonds and level for the full development until the end of 1947, consisted
Israel's iron and steel industry
coupon bonds. The savings bonds of the potentialities of the city of about 90,000 immigrants,
come in denominations from as a health resort in the among them a considerable is almost entirely limited at -
$50 to $10,000 and mature in mountains of Upper Galilee. number of so-called "illegal" present to the fabrication of
products. The manu-
twelve years at 150 per cent of Maiter plans have been pre- immigrants who entered despite finished
face value. Thus a $100 savings pared for each of these cities. restrictive immigration quotas. facture of basic steel, now no
more than 6,000 tons annually,
bond will be worth $150 on ma-
Urban development plans call The current movement, which will be greatly increased as a
turity. Israel coupon bonds for the sub-division of the cities was given impetus by the cre- result
of the $500,000,000. State
come in denominations from into residential neighborhoods ation of the State of Israel in of Israel
bond issue.
$500 to $100,000, mature in fif- of from 6,000 to 8,000 inhabi- May, 1948, had by the end of
Center
of the expanding
teen years and pay 31/2 per cent tants, each forming a unit 1950 already brought more than
ferrous metal industry will be
interest.
equipped with a full comple- a million newcomers into Israel.
Israel bonds pay interest in ment of residential premises, The principal countries of ori- Haifa and its vicinity, rapidly
dollars and can be converted public buildings, local shipping gin during this period were developing into one of the key
into bearer bonds after three centers, work shops, schools, Central Europe, the Middle industrial areas in the entire
years at the purchaser's op- parks, etc. The plans, moreover, Eastern countries, Poland and Middle East. Favored with
tion. Israel bonds are redeem- provide for extensive open the Balkans. In the first two one of the best harbors in
that part of the world, Haifa
able upon the death of the spaces and green belts separat- and a half years of Israel's ex-
offers- ready access to raw
purchaser.
ing the various neighborhoods istence, more Jewish Mimi-
The American Financial and and serving as the site of the grants entered the country then materials arriving by ship.
Israel's three-year program
Development Corporation for Is- joint social, educational, corn- during the three decades under
envisions the construction of
rael is the organization which mercial and other institutions the Mandate
an open . hearth furnace with
will direct and manage the sale catering to the needs of the
The pioneering and idealis- the capacity to produce 30,000 '
BARTLEY CRUM
of State of Israel bonds here. entire city,
tic element predominated tons of ingot steel annually. ;
Its headquarters are located at
Under this program, which, of
the country economically self- 2 Park Avenue. Henry Morgen- course, will require a number of among the first group of im- While this will still fall sub-
migrants, including many who stantially short of meeting
sufficient and to absorb an ex- thau, Jr., former Secretary of
Israel's need for raw steel, it
pected three-year immigration the U. S. Treasury, is Chairman
will represent a vast increase in
of 600,000 newcomers. of the Board of Governors of
the country's ability to meet
Israel's plan to float her the corporation, the Chief Ex-
the requirements of its process-
first bond issue was first put ecutive Officer - is Henry Montor
ing and finishing mills and its
forward in September, 1950, and the Chairman of the Cor-
manufacturing industries.
when Prime Minister David poration's Advisory Council is
This new open hearth furnace
Ben-Gurion proposed it to James G. McDonald, former Am-
will form part of a network of ,
American Jewish leaders. One bassador to Israel.
five co-ordinated plants, which
month later, the representa-
Israel bonds, I think, should
will constitute Israel's first im-
tives of forty-five national be of great interest to all Ameri-
portant "b a s i 2 steel" industry.
Jewish organizations, meeting cans who are desirous of de-
in Washington at a National veloping the growing friendship
- These plants should all be
in operation by the beginning
Planning Conference on Is- between our country and the
of 1953. While they will be
rael, unanimously endorsed new democracy.
small in comparison with the
the proposal and subsequently
gigantic steel mills of Aliquip-
steps were taken to organize
pa and Bethlehem and other
First Grain Elevator
the bond issue.
great American steel towns,
Since Israel's first Independ- In, the Middle East
they will play a crucial role
tnce Day, the nation has done
The first grain elevator in
in the Middle East. Perhaps
t tremendous job in building a the Middle East will soon be
more than any other element
firm foundation for the future. erected in the Port of Haifa.
of Israel's three-year develop-
Israel's population rose in this More than 165 feet high, it will
ment program, these plants
period from 655,000 to 1,400,000 be one of the tallest structures
can revolutionize the econom-
citizens. Land under cultivation in Israel, and will have a 12,000-
ic status of the Jewish State.
increased by 50 per cent. Indus- ton storage capacity, which will
The impact of these new
try increased by 42 per cent. later be increased. The use of
plants on Israel's balance of
The population of Israel today the elevator will make possible
trade is startling. When they
ranks sixth in per capita in- the importation of grain in
are in full operation, they are
come of all the nations in the bulk, involving an estimated
expected to bring about an an-
world, with Israel's working annual saving of 400,000 Israel
nual net saving of more than
population leading those of the pounds ($1,120,000) in import
Israel's industry has reached out into the field of high $12,500,000 in foreign currency.
countries of Central and Eastern costs. Israel's shipping and
Steel provides the sinews of a
precision work. Increased manufacture of clocks and watches
Europe.
storage facilities will be further
Israel is floating a $500,- expanded as a result of the will supply an important -need of Israel's population which is modern nation's strength. As a
000,000 bond issue in order to Israel bond issue.
now being met largely by imports. The reduction of import result of its forthcoming bond
issue, the State of Israel will be
expand her existing economy
needs will be accelerated by expanded production resulting
enabled to build that strength,
and to make possible the 6 THE JEWISH NEWS
from the $500,000,000 State of Israel bond issue, to be offered and to continue the develop-
healthy integration of 600,000
Friday, March 16, 1951
to the American public about May 1.
ment of a healthy economy.

Soon a Country
Of 2,000,000

Of Great Interest to All Americans

Steel For A
Rising Land

A Keen Eye and a Steady Hand

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