Evening star., 1952-03-06
STATE,or ISRAEL,
$500. .ooo, 900 iNpEPEMpfhef
BOND ISSUE

The State Of Israel $500, ,000, 900 Bond
Issue is intended to promote. the economie
development Of the State. The. proceeds ok
y the Bond Issue are 10 be used for the purs
chase of machinery, raw materials. equip
ment and other items designed to increase
the country's productive facilities 50 that it
may earn and save foreign currency. OF the
total amount, 500, ,000, 900 is 70. be- allo.I,
Gated for investment in the fields of industry
and power. The sum Of $130,000, 900 has
been designated for agricultural projectss
$40, ,O00, 900 for the development OF hafbofs,
shipping and railroads; $4,000, 900 fofI
trade and services including the developmentl
Of the tourist industry; and $50, ,000, 900 forI
the establishment of government mortgage
bank for housing.
The balance, after payment of the exsi
penSes OF the issue, is to serve as reserve
for unanticipated projects or for increased
expenditures for the designated projects.
The Governments economic deveiopl
ment program involves q total project ex.
penditure Of $500, ,000, 900. of which
100000, 900 is to be provided BY Israel
and other countries, and the balance is to-
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 ct the
rate of 100000 q year, Israel requires capital,
imports to meet the large investment nee.
essary to create permanent employment Op.I
portunities and housing for the newcomers.'
A balanced and mature economy will as o
rule produce enough to cover the consump.I
tive needs of its population and to pfovidel
for some further investment to increase prof.
ductivity. But under the best conditions, cur.I
rent production cannot begin to supply thei
huge capital needs Of Q population that Is in.l
creasing At the enormous rate experienced byj
Israel. Palestine and Israel, therefore, have
always had an adverse trade balance-like
many young countries facing immigration
and development tasks, including the United
States, Australia and New Zealand. As im.I
migration increased, so did the adverse trade
balance. The import surplus served to meet
the investment needs of the economy. Foe
1949 receipts on current account were (ex.I
pressed in Israel Pounds, I.L.) Ill. 10000.
900 and payments, IL. 94.100,000. For
1850 receipts on current account were ILL.,
23,800,000 and payments, IL. ll3,400.I
900.
II is one Of the major purposes Of the
Bond Issue to improve Israels balance Of
trade through the establishment of new
industrial and agricultural enterprises and
through the expansion of production for ex.
port as well as for home consumption.
As Of December 81, 1880, the funded
debt was IL. 1i4,200, 900 and the floating
debt, IL. 1900, 900. The figures do not in.
Guide any Treasury Bills, because Of theif
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 feaect
the objectives Of the State Of Israel to provide
for the immigration and absorption Of 4
large number Of Jews. From May IS, 1o4s,
to March 81. l949, receipts were IL. 28,.l
88S, 900 and expenditures, IL. 27,52o, 900.
From April I, 1919 to March 81, 1850,
receipts were IL. 92,s76. 900 and expendi.
lures IL. 93,800, 900. From April I, 1850
to January 81, 1851, receipts were ILL
l13,473,000 and expenditures IL. i12,.l
O87, 900. These figures do not include Spe.l
cial Defense Budget expenditures or receipts
from internal loans financing same.
The American Financial and Develops
ment Corporation for Israel with head.I
quarters at 100 Broadway, New York 81
New Yofk, is the principal underwater for
the State Of Israel Bond Issue. The commits.
sions or discounts are not TO exceed 3h9b.l
Jwe sypss ~ Sends sss sGsssd q ~
% fsilews
(al lsissssf eeoriag Donds Dssomissssd ~
Fifteen year 3hss Dollar coypoa sssds.l
Interest paysbls May end Ney. .
Dsnomiaasisna $500 $1,000 $a,sool
5000. $4,000 100000
tblcspiisl Appsseisfiea Bonds DsaemissssA
% Twelve ysos Delisr Saviass ssads.,
MatSrity Nalsss 15ok u issss smesas
Dsaenissiieas. 50 500 $1so ..$soo
$1,000 $500 : $500 $1,000