The Southern Jewish weekly. [volume] (Jacksonville, Fla.) 1939-1992, 1952-01-04

$5OO.OOO,OOO
INDEPENDENCE BOND 1881
Two types Of Bonds are offered at par
as follows:
(u) Interest Beoring Bonds Denominofed as
Fifteen Year 3h96 Dollar Coupon Bonds. In.
ferest p0yoble Muy and Nov.
Denominations: $500 81 900 $500 5000
$4,000 100000
(b) copituI Appreciation Bonds Deneminofed os
Twelve Year Dollar Servings Bonds, MotUrity
volUe: 1905 Of issue amount
Denominations $50 500 $3.50 $500
$1,000 $4,000 $1,000 $4,000
The State of Israel $5O0,OOO,OO0 Bond Issue is
intended to promote the economic development
of the State The proceeds of the Bond Issue are
% be used for the purchase of machinery, raw
materials, equipment and other items designed
TO increase the countrys productive facilities so
that it may earn and save foreign currency OF
Gated for investment in the fields of industry and
power. The sum of $13O,OOO,OOO has been
designated for agricultural projects; $4,000, 900
for the development of harborS, shipping and
railroads; $45,00O,O0O for trade and services
including the development of the tourist in
dustry; and $3O,000,OOO for the establishment
OF government mortgage bank for housing.
The balance, after payment of the expenses
OF the issue, is to serve as reserve for unantici
pated projects or for increased expenditures for
the designated protects.
The. Governments economic development
program involves total projected expenditure of
$1,50O,000, 1000, of which $500,000,000 is to
be provided by Israel and other countries, and
the balance is to be obtained in the United States
The $500,000,000 State of Israel Bond Issue is
the largest single source of funds for this pro-
gram.
With immigration proceeding at the rate
OF zoo, 900 year, Israel requires capital imports
to meet the large investment necessary to create
permanent employment opportunities and hous-
ing for the newcomers. A balanced and mature
economy will as rule produce enough to cover
the consumptive needs of its population and TO
provide for some further investment to increase
productivity. But under the best conditions, cur
rent production cannot begin to supply the huge
capital needs Of population that is increasing
at the enormous rate experienced by Israel PaleS-
tine and Israel, therefore, have always had an
adverse trade balance-like many young coun-
tries facing immigration and development tasks,
including the United States, Australia and New
adverse trade balance. The import surplus served
TO meet the investment needs of the economy.
For 194o receipts on current account were lex
pressed in Israel Pounds, LL.) IL. 20,6O0,OOO
and payments, IL. 94,100.O00. For 1850 re-
ceipts on current account were IL. 23,800,00O
and payments, IL. 113, 100000.
1t is one of the major purposes of the Bond
Issue to improve Israel's balance of trade through
the establishment of new industrial and agricul-
tural enterprises and through the expansion of
production for export as we'll as for home con-
sumption.
As of December 81, 1850, the funded debt
was IL. 114,200,000 and the floating debt,
IL. 100000. The figures do not include 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
detectives of the State of Israel to provide for the
immigration and absorption of large number
of Jews. From May IS, 1913 to March 81, 1919,
receipts were IL. 1885 900 and expenditures,
IL. 27,529,000. From April 1, 1949 to March
81, 1850, receipts were IL. 92,876,00O and
expenditures IL. 93,8OO,OOO. From April l,
1850 to January 81, 1851, receipts were IL.
liz, 473, 900 and expenditures IL. liz ,087 900.
These figures do not include Special Defense
Budget expenditures or receipts from internal
loans financing same.
The American Financial and Development
Corporation for Israel with headquarters at 100
Broadway, New York 5, New York, is the prin-
cipal underwater for the State of Israel Bond
Issue. The commissions or discounts are not to
exceed 3K96.