$50,000 J. D. C. Emergency Loan Helped Thousands in Palestine

Improvement of the economic condition of Palestine is indicated in a report from E. N. Mohl, director of The Loan Bank, Ltd., of Palestine to the Joint Distribution Committee, of the administration of an Emergency Loan Fund of $50,000 made available to the Jews of that country during the crisis of 1925-1928.

Speaking of the value of this loan fund, Mr. Mohl said in his report: “The timely help to the Jewish population, especially in Tel Aviv, as given by the Joint Distribution Committee, was effective beyond description. Thousands have re-established themselves in normal occupations through the aid of these loans. The Joint Distribution Committee in granting this fund and in inaugurating this work has again been of outstanding service to the Jewish community of Palestine.”

The Emergency Loan Fund was called into being late in 1926, in response to a cablegram to the Joint Distribution Committee from Dr. Magnes and Mr. Mohl, describing the acute situation which had arisen in Palestine. They asked for $50,000 to be used for loans to assist those who were desirous of taking up some productive activity but lacked funds for the purchase of tools and implements.

When the cablegram arrived there were no funds in the treasury of the Joint Distribution Committee available for the purpose outlined therein. After a conference between Felix M. Warburg, its chairman, David A. Brown, chairman of the United Jewish Campaign, Bernard Flexner, president of the Palestine Economic Corporation, and others, an arrangement was made with the latter organization whereby $50,000 due to it from the Joint Distribution Committee should be forwarded instead to Dr. Magnes and Mr. Mohl to meet the distressing situation they had described.

For the administration of this Emergency Loan Fund, a special board was set up through the cooperation of the management of the Loan Bank and the Vaad Hakehillah of Jaffa-Tel Aviv; applications for loans were received at the office of the latter, while the investigations were made by the Loan Bank, whose staff administered the operation of the fund. £7,000 were budgeted for Tel Aviv, £1,000 for Haifa, £1,000 for Jerusalem and £1,000 as a special reserve.

Between January 16th, 1927, and September 30th last, the committee held 116 meetings and considered 3,378 applications for loans of which about 70% were granted. The maximum average loan was £8.400 and the minimum £7.500. The loans enabled, among other things, 100 men to go to work on the Jaffa-Petach Tikvah road; 200 to get jobs in the Jerusalem Public Works; 250 to work on the Jerusalem-Jericho road; and 30 to help in constructing the Beer-Sheba police buildings.

In making these loans, preference was given to widowers or widows with dependent families, and no loans were issued to applicants who could receive credit from institutions, the Loan Bank or credit cooperatives. An interest charge of 6% was made not for the sake of income, Mr. Mohl reports, but to emphasize the constructive character of the operation.

The making of loans ceased on September 30th last, and the fund is in process of liquidation. “The cessation of activities has caused no hardships,” Mr. Mohl reports. “The number of those now in real need is small. They can readily he taken care of. A large majority of those who received assistance from the Emergency Loan Fund have recuperated and are firmly on their own feet.

“The record of collections is very good-much better than anticipated. This is due not only to the good judgment exercised by the loan committee, but also to the fact that the general conditions in the country have improved.”