A decision to seek $400,000,000 for Israel’s economic development through the sale of Israel bonds during the next five years was adopted here today at the closing session of the two day national planning conference of the board of governors of the Israel Bond Organization held at Waldorf Astoria Hotel.
A quota of $85,000,000 for 1964 was voted at the conference by the more than 200 Jewish communal leaders from various parts of the United States and Canada. This will be the first year in the flotation of the new Third Development Issue of Israel Bonds that will end in March 1969. In 1963, the proceeds from the sale of Israel bonds amounted to a record sum of $69,172,050 of which $55,471,900 came from the United States and the balance from Canada, Latin America and Europe, it was announced at the conference by Dr. Joseph J. Schwartz, vice-president of the Israel Bond Organization.
Dr. Schwartz pointed out that the proceeds obtained in 1963 were the largest ever raised in the 13-year history of the Israel Bond campaign, exceeding by more than 19 per cent the total of $58,047,350 sold in 1962, which was the biggest year up to that time. He reported that since 1951 disbursements of Israel bond funds amounted to $603,300,000.
Analyzing the results of the 1963 campaign, Dr. Schwartz declared that the beginning of the redemption in May of last year of the first Israel Bonds sold in 1951 was “an important element” in stimulating increased sales. He reported that from May I through December 31, 1963 the Israel Treasury paid out $13,459,125 on Israel Independence Issue Savings Bonds which matured during that period. Repayment has been made on the basis of 150 cents on the dollar.
“The process of redemption as a stimulating factor in the campaign was enhanced by the favorable progress of the economy of the State of Israel,” Dr. Schwartz said. “Together, these two elements created a very high degree of confidence in Israel Bonds as a sound and productive investment. As a result many new purchasers appeared on the scene, including a growing number of institutions such as banks, labor unions and pension funds.”
NEW $400,000,000 BOND ISSUE TO BE LAUNCHED AT CONFERENCE IN MIAMI
The conference also decided that the new $400,000,000 Bond Issue would be officially launched at an International Inaugural Conference in Miami during the weekend of Friday, February 21st. It was announced that the guest of honor on that occasion will be Baron Edmond de Rothschild of Paris, who is serving as president of the Israel Bond drive in Europe.
The Third Development Issue of Israel Bonds will consist of two types of bonds: Fifteen-Year Coupon Bonds paying 4 per cent interest per year, in denominations from $500 to $100,000, and Savings Bonds in denominations from $100 to $10,000, maturing 12 years after purchase at 160 per cent of the issue amount. For example, a $100 savings bond will mature at $160, and a $1,000 savings bond will have a value of $1,600 at maturity.
Abraham Feinberg, president of the Israel Bond Organization, told the conference today that “the extraordinary success of our program was due to two principal factors: first, American confidence in the ability of the people of Israel to “build a dynamic democracy and second, their impressive achievement, with the aid of Israel Bond funds, in planting the seeds of prosperity in an undeveloped land.”
Samuel Rothberg, national campaign chairman, describing the purpose of the new Israel bond issue, said: “It is geared toward the ultimate achievement of a self-supporting economy. Money provided through the new Israel bond issue will, as here tofore, be channeled to the maximum extent possible into productive investments, such as increasing cultivated and irrigated areas, establishing industrial plants, developing natural resources, building an adequate transportation and communication system, and stimulating the construction of housing for the accommodation of new immigrants and the natural increase in population.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
