Our Daily News Letter

(By Our Jerusalem Correspondent)

That Palestine’s present economic depression following on a period of unusual activity during the first half of 1925, offers no grounds for fear, that it is only temporary and confined largely to Jaffe and Tel-Aviv, is the opinion of the Jaffe Chzmber of Commerce. At its last meeting held on November 23, the Jaffa Chamber of Commerce discussed the condition of business and industry, particularly in Jaffa and Tel-Aviv, and has since published a resume of its opinion as formulated at the meeting.

The statement points out that Jaffa and Tel-Aviv are in an exceptional position economically. “Haifa and Jerusalem,” it is noted, “did not experience the feverish development during the first half of 1925 which Jaffa and Tel-Aviv went through and they are likewise not subject to the depression prevalent in the latter two cities. As for the colonies there is no change at all to be noted in their condition.

“As regards industry, it is to be noted,” the statement proceeds, “that those industries which succeeded in gaining a solid foundation during the course of the foregoing year are in a healthy state now too and are not aware of any unusual difficulties.

“As for the building supply business, which constitutes the chief branch of Jewish industry it is to be observed that the large concerns which import their materials direct from foreign countries have succeeded in adapting themselves promptly to the present situation. They do not expect any large shipments from abroad during this winter. It is true that some of them had to ask for an extension of credit but this will no doubt be granted them without much difficulty with the aid of the banks.

“In general it should be said that lately in the building supply business altogether too much credit has been extended, even by the smaller concerns, and these are now carrying a heavy burden.

“We have arrived at the conviction that the other branches of business and industry are suffering in the first place because of the present standstill in the building industry and because of the further circumstance that Jaffa and Tel-Aviv have no room for so many stores and shops as have sprung up in the past year.

“It becomes more and more apparent,” the Jaffa Chamber of Commerce further points out, “that it is by no means the intention of the banks to withhold credit from their reliable, well established clients, but on the contrary it is the desire of the banks to come to the aid of their clientele in this time of economic depression.

“It is not likely that business and industry will again attain the same high level as in the first half of 1925. On the other hand, however, it is clear now that a period of normal work can be expected with a revival of business activity in the spring of 1926. All those present at the meeting of the Chamber of Commerce were of the opinion that there is not the slightest ground for the fears expressed in certain quarters. The present situation has in large measure led to the strengthening of many weak points in the realm of Palestine business activity.”