OPINION
Israel Bonds:
Fulfilling A Vision
I
decade, hundreds of thousands of Jews
srael's War of Independence was
made their way to Israel. Israel's dramat-
won and harsh economic realities
ic rescue of Ethiopian Jewry brought
set in. Although financial
thousands of additional immigrants to
resources were severely depleted,
Israel. It was the per capita equivalent of
Israel still faced the daunting challenge
the United States absorbing 50 million
of nation-building. Moreover, Holo-
immigrants. Billions of dollars in bond
caust survivors and displaced persons
proceeds
were tapped to help provide
flooded into Israel by the tens of thou-
longterm
housing and jobs for Israel's
sands. From Iraq and North America,
new citizens. Among those
an additional 100,000 immi-
immigrants were scientists,
grants sought refuge in the
technicians
and engineers,
new Jewish homeland. Immi-
now
creating
many of the
grants were housed in primi-
innovations
making
Israel a
tive tent shelters called
high-tech
international
leader.
maabarot and sustained on
In
Detroit,
the
campaign
severely limited rations. Eco-
took major steps forward
nomic growth seemed incon-
with
the establishment in
ceivable.
1952
of a Women's Division,
Then in 1950, Prime Min-
chaired
by Mina Bargsman
ister David Ben-Gurion held a
JAM ES S.
and
with
the establishment of
meeting of 50 American Jew-
GALF UND
a
Labor
Zionist
Division,
ish leaders at Jerusalem's King
Spec ial to
today's
Labor
Division.
It was
David Hotel to discuss his
The Jew ish News at a November 1954 Labor
solution: the floating of a
Zionist dinner, at which
bond issue to unite Diaspora
Golda
Meir
was the guest speaker, that
Jewry with Israel in an economic part-
Emma
Lazaroff
Schaver, who remains
nership to build and develop the mod-
active
in
the
Israel
Bonds campaign to
em Jewish nation.
this
day,
became
the
first woman Israel
In 1951, Ben-Gurion came to Amer-
Bonds
Trustee
by
purchasing
a $10,000
ica to launch the Independence Issue of
Israel
Bond.
Israel bonds. His visit included a stop
On June 21, 1961, at the Masonic
on May 21, 1951, in Detroit, where he
Temple,
a Labor Division dinner was
helped inaugurate the local Israel Bonds
held
at
which
Walter P Reuther was
campaign at a dinner at the Statler
honored
as
the
"Labor man of the
Hotel. That first year, bond sales
decade."
It
was
the first of many Bond
nationally exceeded all expectations,
dinners
that
the
international labor
totaling $52.6 million. Detroit sales
movement
sponsored
on behalf of the
reached $2.04 million.
State
of
Israel.
Today,
both
of these divi-
Since that time, sales of Israel bonds
sions
continue
to
play
vital
roles in the
and other securities have surpassed $17
economic
development
of
Israel.
billion. Annual sales routinely approach
In those early years, B'nai B'rith
the $1 billion mark; and in Detroit,
lodges,
Pioneer Women chapters,
sales typica lly exceed $14 million each
(immigrant organiza-
landsmanschaften
year. Bond campaigns are conducted in
tions)
and
synagogues
also played
cities throughout North America, Latin
major
roles
in
helping
to
build Israel's
America and Europe, fulfilling Ben-
infrastructure
through
the
bond cam-
Gurion's vision of a worldwide Jewish
paign.
In
1959,
Congregation
Beth
partnership with Israel.
Abraham
(Beth
Abraham
Hillel
Proceeds from the sale of bonds are
Moses) honored Irving Schlussel at the
channeled directly into Israel's Finance
first State of Israel Bonds dinner under
Ministry, where they are allocated exclu-
the
auspices of a synagogue; in 1967
sively for economic endeavors. Israel has
Adat
Shalom Synagogue became the
used capital generated through the sale
first
synagogue
in the United States to
of bonds to build a sophisticated indus-
raise
over
$1
million
at a High Holy
trialized nation that now has one of the
Day
appeal.
In
1968,
Congregation
world's fastest-growing economies.
Shaarey
Zedek
honored
Cantor Jacob
Record purchases were recorded dur-
H.
Sonenklar
at
its
first
Sate
of Israel
ing the years of 1967 and 1973; and,
Bonds
dinner,
which
has
since
become
during the Gulf War year of 1991, sales
one
of
the
Detroit
area's
most
endur-
exceeded $1 billion for the first time.
ing traditions. In 1973, Tam
With the granting of free emigration
O'Shanter Country Club became the
rights to Soviet Jewry during this
first country club to hold an annual
dinner; and in 1978, Michigan
James Galfund is public relations
National Bank became the first local
manager, Development Corporation for
bank to hold a dinner.
Israel.
Shown at the Oct. 28, 1954, State of Israel Bonds "Guardians of Israel" dinner are
Phillip Stollman, Detroit Committee for State of Israel Bonds chairman; Golda
Meyerson (Meir), minister of labor in Israeli G. Mennen Williams, governor of
Michigan.
Today, Jewish and non-Jewish pur-
chasers have a choice of fixed-rate secu-
rities, variable-rate instruments linked
to prime, zero coupon bonds and cer-
tificates that can be utilized for gift-giv-
ing. Many of these securities offer com-
petitive rates and may be useful for such
purposes as retirement plans, college
education, charitable giving or visits to
Israel. Detroit Israel Bonds campaign
chairman Bernard Stollman said, "In
the very beginning, Israel bonds were
viewed almost like a charity. Most peo-
ple didn't really think that they would
get their money back. But that was fine.
It was for Israel. Today, it is a different
story as bonds are clearly regarded as
prudent investments that can represent
important additions to many portfo-
lios."
Every security sold by the bonds
organization is backed by the full faith
and credit of the State of Israel. To
date, of the $18 billion in securities
purchased, $12 billion has been
redeemed.
"If Israel wants to be economically
independent, we have to figure that in
the next 12 years we will have to double 10
our GNP from $100 billion to $200
billion," said Gideon Patt, Israel Bonds
president and former minister of indus-
try and trade. "For that to happen, we
will have to double our infrastructure.
That means we will have to anticipate
$15 billion for bond sales over the next
12 years. Bond sales will become espe-
cially important now that the U.S.-
backed loan guarantees are due to
expire."
"What we want to do through Israel .
Bonds," said Southfield-based Michigan
Israel Bonds Executive Director Her-
shell Wais, "is build a connection. That
has always been an integral part of the
campaign. The children of the first
Israel Bonds leaders are today respected
community leaders in their own right.
We want this to continue. We believe
that Israel Bonds can be an important
means of passing on support for Israel
from generation to generation. We want
families — parents, children and grand-
children — to be proud to have a per-
sonal link with Israel through Israel
Bonds." El
5/1
1998
40
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