TEL AVIV (Jun. 9)
The exchange of currency and the compulsory loan announced last night by the Israel Government was met with a mixed reaction in the press here today.
Davar, leading Labor paper, welcomes the government’s decision as “another move in the direction of recovery of the monetary situation and decrease of the exaggerated purchasing power of the citizenry.” The paper, which is strongly pro-Government, says that the new move will help to stabilize the country’s economy and to hold back inflation.
Haboker, organ of the General Zionists who are opposed to the present regime, calls the government’s order “another desperate move.” It criticizes the government for not having any “constructive measure” to announce. The paper does not see any possibility of improving the economic situation by freezing 10 percent of the money in circulation. Such a move, it says, will not encourage increased production or capital investments.
Haaretz, independent newspaper, says that the government move was unavoidable and is the logical result of the fact that the government’s new economic policy has not accomplished its objectives. The paper considers the move not too heavy a burden on the Israeli people and, therefore, welcomes it. At the same time, it stresses the view that money exchanges and obligatory loans cannot replace necessary fundamental changes in the country’s economy. The paper asks all citizens to accept patiently the discomforts involved in the currency exchange.