Israel Border Guards Reinforced to Prevent Smuggling of Currency

Israeli border guards were heavily reinforced today to prevent the smuggling into Israel of old Israeli currency from foreign countries.

The exchange of old Israeli pounds for new currency proceeded smoothly today. The new money immediately went into circulation today throughout the country, giving new impetus to trade.

Meanwhile, the owners of real estate called an emergency meeting here to consider what stand to take toward the projected law to impose a compulsory loan on owners of immovable property.

The Finance Ministry has announced that travellers entering Israel will not be allowed to bring Israel currency of any denomination with them into the country. This regulation, which includes travelers of all categories, comes into effect immediately.

This regulation has been introduced as a result of a considerable amount of Israel currency having been taken out of Israel illegally over the past four years. Travelers to Israel who bring U.S. dollars with them will be able to exchange that currency at the established preferential rate of $1.40 to the pound.

(Commenting editorially on the Israeli currency exchange and compulsory loan, the New York Herald Tribune today declared that while any compulsory financial measure “carries the potential disadvantage of discouraging” foreign investors, this potentiality may be reduced by constructive use of the loan by the Israel Government and continuation of steps to assure full protection to foreign capital.)

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