.

xchange of Currency Started
n, Israel; Does Not Affect Business

Confident of Success

General Zionist leader Fritz
JERUSALEM, (JTA) --Tens of
ousands of Israelis gathered Bernstein insisted that the
tside banks in long queues to money realized through the loan
• change their currency for the would be used to "fill a finan-
r ew bills which became legal cial gap" rather than go for
- nder at noon, Monday. The productive purposes. Therefore,
: nks halted all transactions he said, the loan would further
• cept the exchange of curren- intensify the in fla t i o n. He
ROBERT TREPECK (center),
h• in a 48-hour bank "holiday" charged that the compulsory
hich ended June 10. All other loan would undermine the con- co-chairman of the Allied Jew-
usiness continued in orderly fidence of banks and investors ish Campaign gas and oil sec-
• hion with payment being in the country, and chided the ti n, reported on his section's
ade by check or by one pound government for acting without work to NATHAN EPSTEIN
ills and change. (See later story consulting Parliament.
(left), pre-campaign chairman
page 1).
Dr. Moshe Eneh, Mapam dep- for mechanical trade s, and
:Both political leaders and the uty, demanded that the compul- REUBEN AXELROD. Gas and
-neral public seem to be equally sory loan be imposed on all oil section has 98% of last year's
_uzzled by the government's ac- monies over 200 pounds rather money in and half of its slips
'on, but it has caused far less than the five pounds ordered by still to be covered and the group
omplaint than might have been the government and on bank is sure to go over the top in
- nticipated. More than one wag deposits over 500 pounds rather the next few days.
- as heard to exclaim today:
than 50 pounds as is being done.
Epstein will be among the
hank God, I have no money."
He also suggested that the fathers to ke honored at today's
When he announced the ex- loan be imposed on holders of report luncheon. Both he and
hange order at a press confer- gold and other valuables who his son, Jack, are working in
'nce, Finance Minister Eleiter had so far "escaped from con- the campaign.
aplan estimated that there tributing to the welfare of the
ight be as much as 170.000.000 state."
Mizrachi Takes Initiative
• .uncis of currency in circula-
For All-Zionist Parley
ion in Israel, but the Minister
. id that the government would David Horowitz Quits
of be sure until it had all been Israel Finance Ministry
NEW YORK. I JTA )—A pro-
posal that the Mizrachi Organi-
urned in.
zation of America take the ini-
Since it is illegal to take Is-
TEL AVIV, (JTA) — The re-
aeli currency abroad except in signation of David Horowitz as tiative in convening a confer-
lence of all Zionist groups in the
e pound notes or less, Israeli
director general of the Israel United States for the purpose
onsuls abroad have been in- Finance
Ministry was an- of evaluating the problems of
tructed to exchange only coins
nounced here. He will remain the Zionist movement toward
nd bills up to one pound in
the appoint- the goal of revamping the entire
lenomination. Larger bills are lat his past until
ment of the new
structure of the existing World
umed to have been smuggled
Zionist Organization - was
ut of the country and are con- Minister of Fin-
ance to succeed
adopted at a special all-day ses-
dered void.
Eliezer
Kaplan
sion of the Mizrachi national
"We recognize the seriousness
who
recently
re-
executive committee.
ti
the measures we have just
s
i
g
ned
because
Another resolution urges that
• •opted," Mr. Kaplan told the
the Mizrachi World Union,
4ress conference, "but we see of ill health.
Horowitz
will
should hold its annual interna-
he necessity for the stabiliza-
tional conference this • year in
o n of our currency." He retain his post
as
economic
ad-
the United States instead of
• .inted out that although the
Horowitz
visor
to
the
gov-
Israel.
rrent year's regular budget is
The Mizrachi executive ap-
• : anced, the government needs ernment.
Horowitz 's resignation followed proved a two-months campaign
• ore money to meet its develop- his return from London where
during the summer to prepare
.•ent budget and has decided
he had attempted unsuccessful- for special appeals in syna-
to issue more banknotes or
ly
to
obtain
a
five
million
pound
gogues throughout the United
unities to cover either the
credit from the British govern- States during the High Holidays
, evelopment or the defense bud-
ment
to
finance
Israel's
oil
im-
in September on behalf of the
ets. He emphasized that the
(3vernment expects all citizens ports for the year. He reported, Israel Bond campaign.
however,
that
he
had
arranged
The formation of a National
• make sacrifices, if necessary,
to help insure the country's eco- private credits which would as- Friends of the Bar-Ilan Univer-
sure Israel's oil supply for some sity was announced by Dr. Pink-
• omic independence. •
time.
hos Churgin, American Nfizrachi
president.

-

nesset Debates
urreency Issue

Direct JTA Telet.* W , re to
The Jewish sew

The Israel Knesset on Tues-
. ay began debates on the gov-
ernment's sudden decision to
exchange currency and set aside
10 percent of all bank deposits
and currency in a compulsory
oan.
The debate was opened by
•nance Minister Eliezer Kaplan
who reiterated his explanation
that the compulsory loan from
hich the government hoped to
,.•tain 25,000,000 pounds will be
used to cover part of the de-
velopment budget while at the
. e time fighting inflation.
The Minister explained that
the government proposes to tax
real estate owners rather than
orce them to set aside part of
eir assets in a loan.
This announcement raised a
Storm of opposition even among
Mapai deputies, but Communi-
)eations Minister David Zvi Pink-
has, who took over defense of
he government's position,
..inted out that the property
owners had relatively little cash
available and would be forced
to seek mortgages to obtain the
cash for the loan. In the long
run, he said, this would force
the government to issue more
Aurrency to cover the mortgages
and the purpose of the loan be
;defeated.
Mr. Pinkhas rejected op-
position charges that the
compulsory loan meant "rob-
bing the public" which would
receive "devaluated money"
',hen the loan matures in 15
years. He counterattacked by
demanding to know why op-
position deputies had so little

-

with in Israel's economic In-
sure, adding that he was con-

vinced that the loan would be
pepayed with a full value cur-
rency in 15 years, and that by
that time conditions would
have improved for all.

Truman Won't Promi.:e
McCarron Bill Veto

WASHINGTON, (JTA
dent Truman gave no commit-
ment to three Democratic Sen-
ators who visited the White
House to ask him to veto the
McCarran-Walter omnibus im-
migration bill which has been
described as "racist" and "remi-
niscent of Nazi laws." The Sen-
ators were Herbert H. Lehman.
of New York. Hubert Humphrey,
of Minnesota, and Blair Moody.
of Michigan.
The Senators said after talk-
ing with the President that al-
though he gave no promise to
veto the controversial bill, they
assured him that if he does veto
it, they have enough votes lined
up to sustain the veto. Sen.
Lehman said the bill would
cause "a grievous injustice" to
millions.
The • Senators made known
that Senators William Benton.
of Connecticut. and Paul H.
Douglas. of Illinois. were to have
accompanied the group to the
White House but were out of
the city. Sen. Pat McCarron
meanwhile introduced the final
draft of his bill, as prepared
by a Senate-House conference.
McCarron asked for quick action
on the formality of approval for
the report of Senate-House con-
ferees. He said his bill was
"fair, sound and just."

Not a Visit by Johnny Ray,
But Israel Citizens to 'Cry'
Onion lovers in Israel—prob-
ably an overwhelming majority
of the population—were happy
to learn recently that there are
enough onions available to give
everyone who is interested a
reasonable supply until next De-
cember. The current estimated
crop is 10.000 tons. Meanwhile
the first tomato crop is begin-
ning to reach the market. To-
matoes have a monthly con-
sumption of about 5,000 or 6,000

tons.

$715,000,000 Figure Proposed by
Adenaur May Be Compromise Sum

BONN, Germany—A conference between Konrad Adenaur
and Nahum Goldmann appeared ended satisfactorily with
virtual certainty that the Germans will offer 8715,000,000
payable in seven or eight years.
Goldmann, who met yesterday with Adenaur and other
Bonn officials. accepted this proposal as the basis for negoti-
ations for Jewish Conference and indicated Israel would also
accept.
The German proposal still requires Bonn cabinet ap-
proval, but Adenaur is confident this will be achieved, prob-
ably at Tuesday's cabinet meeting.

. THE JEWISH NEWS-3

MTTF10713

I!'

11

Friday, June 13, 1952

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