New-York tribune., 1921-12-25
s $5,O0O,000
Jewish Relief
Firm Formed
Colonel Lehman Develops
Reconstruction Company
Here With Headquarters
Located in w Wars saw
Rate of Interest Small
Jews of Poland Will Put
Up Additional 20 Per
Cent to Sum Subscribed

Credit facilities for the crippled in
dustries of Poland will be supplied
through the formation Of the Jewish
Reconstruction Company in Warsaw,
with capital of $5,o00,000. This sum
VIII be advanced by the American Jew
,ish Relief Committee, whose agents
have reported that the greatest need Of
the thousands of impoverished Jews in
Europe is money to restore their means
of livelihood.
The operating plans of the company
were developed by Colonel Herbert H.
Lehman, member of the banking firm
of Lehman Brothers, who made the an
nouncement yesterday Of the forma-
tion of the reconstruction company. 1t
will function through local co-opera-
tive banks and business and consumers
organizations, with headquarters in
Warsaw.
Small Rate of Interest
"1n all of the credit transactions, ;"
said Colonel Lehman, whether for
small merchants, artisans or farmers,
no profit will be made through for
feiture, and the rate of interest will
be only sufficient to pay the admins
trative expenses. This is a very impor-
tant feature of the plan to set the Jew
ish population back on its feet. The
commercial rate Of interest in Poland
runs from 90 to 200 per cent.
"Experimentally we already have set
aside $1000,000 for the Jewish Recon
struction Company, and the Jews of
Poland will raise s20o,ooo AS our op-
eratlons increase we shall increase the
amount of money at the disposal of
the company, with the understanding
that, whatever the sum may be, the
Jews of Poland will supply an addi-
tional 20 per cent
The American Jewish Relief also has
supplied $500, 600 In loans tc the people
Of Rumania and 100000 for the re-
construction Of homes. approximately
SO per cent of the Jewish people in
eastern Europe have lost their homes
through the war. Tools and building
material also have been supplied on
easy terms to workmen.
= Long Term Loan Made
The committee has made long term
loan of $4,000 pounds sterling to the
Credit Union and Cooperative Bank in
Palestine, which it is helping to estab-
tiSh in. that country in conjunction with
the Palestine Development Council, the
Palestine Economic Council of London
and the Jewish Colonization Associa-
ton. This bank will have a working
capital of 10000 pounds sterling and
will include within its scope the ex-
tension of credit to all branches of
trade, industry and agriculture.
1T is in response to the urgent plea
OF thousands of people whom we have
saved from starvation and epidemic
that we have embarked on this enter
prise" Colonel Lehman said. "The fact
that they have complied with our con-
dltions that they themselves subscribe
Tor part of the capital stock of the
reconstruction company is the best
proof of their desire as speedily as
possible to return to self-sup-
porting and selfrespecting basis. This
and the fact that we are also re-
habilitating 250,000 refugees and sup
porting 100000 Jewish orphans lead
Us 70 hope for a generous response
from the Jews of America in our cam
palgn for $14,0OO,00O, of which 49,
600 600 has so far hecn raised"