increase of prices of raw materials.
“The phenomenon is explained by the growing emigration of German Jews to Palestine during the last two years. Palestine immigrants previously came mostly from Poland and Russia. According to German statistics, ten thousand German Jews emigrated to Palestine in the last two years. According to Palestine statistics, the number was over fifteen thousand. The latter figure should be the correct one, since German statistics only count those who went to Palestine direct from Germany, and many must have gone after an intermediary stay in another country.
“Most of these immigrants from Germany are people who were active in Germany industry and commerce, and belonged to the well-to-do classes, and who go to Palestine not only with their labor power and their skill, but also to invest their capital in economic enterprizes. Thus German emigration to Palestine has meant also an emigration of German capital into Palestine.
“To prevent this emigration of capital exercising an unfavorable influence on the tense currency conditions of the German Reichsbank, Germany has successfully transformed this export of capital into an exports clearing system or transfer arrangements, regulated by an order of the Ministry of Economic Affairs of August 28, 1933, which has for the last eighteen months made it possible to carry out the transfer.
‘ECONOMIC LAWS’ CITED
“On this basis, the prospective emigrant pays his money into a special account in the Reichsbank, and the importers in Palestine, who are required to pay for their goods in German currency, make their arrangements through the Templar Bank in Jaffa, which acts as trustee, paying in Palestine pounds, and the prospective emigrants receive payment for their German deposits from the Templar Bank in Palestine in Palestine pounds. The emigrant is not at liberty to use the money as he wishes. It is available only for two purposes, the import of German goods and long-term investment of capital.
“These circumstances explain the increase in German trading relations with Palestine, but they hardly explain why they have doubled, since practically the whole of the economically active population of Palestine consists of Jews, and the new Germany certainly cannot be assumed to belong to those countries that enjoy the special sympathies of the Jews.”