United Jewish Appeal Signs $65,000,000 Loan for Liquidation of Debts

Agreements for a $65,000,000 debt liquidation loan extended by a group of New York banks and banks in some 40 other American cities to the United Jewish Appeal of Greater New York and local Jewish communities were signed today in New York City and communities throughout the nation. The loan agreement provides that a total of $25,000,000 is made available by New York banks while the remaining $40,000,000 is subscribed by banks in various cities outside the New York area. Repayment of principal for the first two years has been fixed at ten percent per annum.

The loan–a coordinated effort unprecedented in the history of philanthropic organizations–will make possible the refunding and orderly liquidation of debts incurred by the Jewish Agency for Israel, Inc., the United Jewish Appeal of Greater New York and local Jewish communities for rescue and resettlement programs in Israel, Deficit financing of these programs had repeatedly become necessary during the past 13 years to cover mass immigration and rescue expenditures above current contributed philanthropic income.

In New York, the agreement was signed by representatives of the nation-wide United Jewish Appeal, Inc., the United Jewish Appeal of Greater New York, the Jewish Agency for Israel, Inc., and the participating banks at the headquarters of the Jewish Agency for Israel, Inc. (The Jewish Agency for Israel, Inc., an American corporation, is the major beneficiary of the United Jewish Appeal and has sole discretion over American Jewish philanthropic funds which it allocates for the resettlement programs of the Jewish Agency, Jerusalem)

In a Joint statement announcing the signing of the loan agreements, Joseph Meyerhoff, general chairman of the United Jewish Appeal, and Dewey D. Stone, chairman of the Jewish Agency for Israel, Inc., declared:

“This loan agreement represents a milestone in our humanitarian efforts. By stabilizing our debt position, it will free precious, philanthropic dollars for human needs in Israel and in Jewish communities around the globe, needs which are as urgent today as they have been at any time during the past decade. This loan program, for which the income of the United Jewish Appeal serves as collateral, represents not only an expression of confidence in this body but an added spur for all of us to re-double our efforts on behalf of close to 600,000 Jews in Israel and other lands who are dependent on the United Jewish Appeal for basic social and rehabilitation services.”

Among other national Jewish leaders who played a major role in initiating the loan program and getting it under way are Max M. Fisher of Detroit, a national chairman of the United Jewish Appeal and chairman of the Finance Committee of the Jewish Agency for Israel, Inc. Albert A. Levin of Cleveland, who served as chairman of the Loan Program and is a national chairman of the UJA; Irving Kane, president of the Council of Jewish Federations and Welfare Funds; Samuel D, Leidesdorf, treasurer of the United Jewish Appeal of Greater New York, and Gottlieb Hammer, executive vice-chairman of the Jewish Agency for Israel, Inc.

Mr. Stone and Mr. Meyerhoff paid tribute to Mr. Leidesdorf and Mr. Hammer, who conducted the initial negotiations to get the loan effort under way; to Mr. Fisher and Mr, Levin for their tireless efforts in securing the cooperation of local Jewish communities; to the national leadership of the UJA; to Mr. Kane and the Council of Jewish Federations and Welfare Funds, and to local Jewish community leaders throughout the country who had spent many trying weeks negotiating and coordinating this unique project.

The two leaders also expressed their deep appreciation of the “interest and understanding evidenced by the participating banks. ” Recalling that voluntary efforts for humanitarian purposes is as much part of the American as of the Jewish tradition, they termed the loan project “a splendid testimony to a sacred heritage of concern for our fellow-men. “