Knesset Passes Bill for New $350,000,000 Israel Bond Issue
Menu JTA Search

Knesset Passes Bill for New $350,000,000 Israel Bond Issue

Download PDF for this date

The Israel Parliament today gave approval to the first reading of a bill authorizing the floating of a new $350,000,000 “Israel Development Bond Issue” in the United States, Canada, South Africa and several European countries.

The new issue succeeds the “Israel Independence Bond Issue,” which expires May 31 of this year. It will pay four percent interest in dollars and the bonds will mature in ten years. The bonds may be transferred as capital investment for promotion projects approved by the Israeli Development Authority.

Introducing the measure in Parliament, Finance Minister Levi Eshkol praised Henry Morgenthau and Henry Montor, leaders of the bond drive organization in the United States, for their work in promoting the first issue. He also assured the deputies that the new issue would not compete with the United Jewish Appeal,


Mr. Eshkol emphasized that “special recognition and appreciation” is extended by the Israel Government to the Jews of the United States for their “hearty cooperation” in the sale of Israel bonds. “We send greetings to the more than 500,000 Jews who purchased Israel bonds and to all the thousands and tens of thousands who worked day and night in this holy work,” Mr. Eshkol said. “Greetings too go forth to members of the Board of Directors of the Bond Drive and all the workers who showed such unlimited devotion and together contributed to the success of this enterprise.”

The bill was supported in the Knesset by representatives of the Mapai, Mizrachi, Progressives, General Zionists, Herut and Poale Mizrachi. The Mapam faction suggested that the bill be sent to a committee where Mapam members will propose amendments. The Communists voted against it.

In supporting the bill, Dr. Herbert Foerder, leader of the Progressives, said that “the rate of interest plus operating expenses of the Bond Drive still amount to less than the interest rate which the Israel Government is forced to pay for other loans. ” He emphasized that “the Bond Drive is one of the most important means of help extended to Israel.”

Minister Eshkol, in his address to the Knesset, also praised Canadian Jewry and the Jews of Latin American countries for promoting the sale of Israel bonds in their lands.

Founding Funders

The digitization of the JTA Archive would not have been possible without the generous support of the following donors:
  • The Gottesman Fund
  • Righteous Persons Foundation
  • Charles H. Revson Foundation
  • Elisa Spungen Bildner and Robert Bildner, in honor of Norma Spungen
  • George S. Blumenthal
  • Grace and Scott Offen Charitable Fund