The Southern Jewish weekly. [volume] (Jacksonville, Fla.) 1939-1992, 1952-02-29
STATE
OF
ISRAEL
$500, 600, 900 INDEPENDENCE
BOND ISSUE

0OWU uSSVE
Two types Of Bonds are offered at P0s
as follows:
(a1 Interest Beoring Bonds Denominofed as
Fifteen Year 3he0 Dollar Coupon Bonds.
laserest poyobIe Moy and Nov.
Denominations: $500 $1,000 . $500
5000 $4,000 100000
~ Capitol Appreciation Bonds Disseminated
as. Twelve YeaT Dollar Servings Bonds.
Motvrity Valve: 1909 Of issue amount
Determinations: $50 . 500 . $3.50 . $500
$1,000 $4,000 . $4,000 $4,000
The State of Israel $SOO.0O0.O00 Bond
Issue is intended TO promote the economic
development Of the State. The proceeds OF
the Bond Issue are TO be used for the pur.
chase of machinery. raw materials. equip.
mene and other items designed 20 increase
the countrys productive facilities so that it
may earn and save foreign currency. Of the
total amount. $205 10000 is TO be allo.
Gated for investment in the fields of industry
and power. The sum of $4,000. 900 has
been designated for agricultural protects:
$40.O00.000 for the development of harbors,
shipping and railroads; S45 100000 for
trade and services including the development
of the tourist industry; and $4,000. 900 for
the establishment of government mortgage
bank for housing.
The balance. after payment of the ex-
penSes OF the issue. is 70 serve as a reserve
for unanticipated protects or for increased
expenditures for the designated projects.
The Governments economic Develop
mens program involves total protected ex-
penditure of $l.500.000. 900 of which
$500. 100000 is TO be provided BY Israel
and other countries. and the balance is 10
be obtained in the United States. The $780,
100000 State of Israel Bond Issue is the
largest single source of funds for this
program.
With immigration proceeding at the
rate OF 100000 year. Israel requires capital
imports to meet the large investment nee
essary to create permanent employment OPP
potunities and housing for the newcomers.
A balanced and mature economy will as
rule produce enough TO cover the consump-
tive needs of its population and 70 provide
for some further investment to increase pro.
ductivity. But under the best conditions. cur.
rent production cannot begin TO supply the
huge capital needs Of population that is in.
creasing at the enormous rate experienced by
Israel. Palestine and Israel. therefore. have
always had an adverse trade balance-iike
many young countries facing immigration
and development tasks. including the United
c-otes. Australia and New Zealand AS i'm
migration increased. so did the adverse trade
balance. The import surplus served TO meet
the investment needs of the aomy For
1040 receipts on current account were lex
pressed in Israel Pounds. LII IL. 20.6O0.-
900 and payments. IL. 94.l00.O00. For
1850 receipts on current account were IL.
23.S00,000 and payments. IL. ll3 AGO..
600.
Il is one Of the major purposes of the
Bond Issue to improve lsraels balance of
trade through the establishment of new
industrial and agricultural enterprises and
through the expansion of production for ex-
port as we'll as for home consumption.
As of December 81. 1850. the funded
debt was H. ll4.2OO,OO0 and the floating
debt, IL. 100000. The figures do not in
clude any Treasury Bills. because of their
relationship to the Special Defense Budget
which has NOT been disclosed for security
reasons.
Israel has never at any time defaulted
upon the payment of principal or interest
on any debt.
The budgets OF the Government reflect
the objectives of the State of Israel to provide
for the immigration and absorption of a
large number Of Jews. From May Is. l048
20 March 81, 1049. receipts were IL. 49,
1856. 1000 and expenditures. IL. 27.529.000.
From April l, l040 TO March 81. 1850.
receipts were IL. 92.876.000 and expendi.
lures H. 90. 300. 900. From April /, 1850
60 January 81. 1881. receipts were IL.
OS7 900. These figures do not include Special
Defense Budget expenditures or receipts from
inresnal loans financing same.
The American Financial and Develop.
mene Corporation for Israel with head.
qaafsers a9 100 Broadway, New York 3,
New York. IS the principal underwater fof
The Stase Of Israel Bond Issue. The commits.
sicnS q diisOunfs are aot % exceed 311%.