Capital Comment

Washington.

Attracted by the almost remarkable state of prosperity prevailing in Palestine, American business interests have turned their attention to that country for the purpose of expanding trade outlets. That this new attention has yielded results is shown by the fact that United States exports to Palestine in 1934 were double the value of exports in 1933.

Washington’s interest in Palestine’s eagerness to accept goods from this country is heartening to officials whose interest is centered around current efforts to expand export trade in general. In 1933, the United States shipped $2,730,540 worth of goods to Palestine. In 1934, the value of goods exported to that country totaled $4,296,730. From statistics which are immediately available, it appears as if no other country in the world showed such an increased demand for goods from the United States in a period of one year.

The story behind Palestine’s suddenly increased need for American goods is one filled with examples of internal prosperity. United States Vice Consul Thomas A. Hickok, who is stationed at Jerusalem, reports to Washington that general conditions in Palestine during 1934 continued to be very favorable, “with commercial activity exceeding the high levels of 1933.”

In 1934 Palestine imports from other countries totaled around $76,000,000 compared with about $55,000,000 in 1933. Palestine exports in 1934 totaled around $16,000,000 compared with about $12,000,000 in 1933. An increased demand for construction material was an important factor in the rise in imports, while heavy shipments of fruits contributed to Palestine’s expansion in exports. Part of the increase in exports is due to greater shipments of goods to the United States.

Vice Consul Hickok reports to Washington that Palestine’s agriculture has expanded along with industrial activity. The yields of most crops, with the exception of olives, were good in 1934. This was particularly significant in the case of grain crops. The increased yield of grains followed three successive grain-crop failures. The one sore spot in Palestine’s agricultural picture was the olive crop which was only about a third of normal. The improved agricultural situation is attributed to the better distribution of rainfall, which also had a favorable effect on grazing of livestock. Preliminary reports indicate another record for fruit shipments, which are estimated at between 6,250,000 and 6,500,000 cases for 1934-35 as compared with 5,500,000 cases in 1933-34.

Industrial activity is at a high level and prospects are for continued expansion. This is indicated by the substantial investments in new as well as in the existing industries. In the existing industries, large expenditures are designated for electric, potash and cement works. A fair index of the growth of industry and commerce in Palestine is also furnished by the sales of electric current, which totaled 31,381,040 kilowatts in the first ten months of 1934 as compared with 20,136,840 for the entire year of 1933.

Palestine is undergoing a construction boom largely as a result of increased immigration. Newcomers into the country totaled about 45,000 in 1934, of which about ninety-five per cent were Jews. An important construction development during 1934 was the completion and inauguration of the oil pipe line connecting the Iraq oil fields with Haifa Harbor.

As a result of the favorable economic situation, the Palestinian budget revenues for 1934 showed a substantial increase. Revenues are running ahead of estimates of receipts and expenditures. For the first nine months of the 1934-35 fiscal year revenue receipts amounted to more than $19,000,000 and expenditures totaled slightly more than $11,000,000. These figures compare with estimated revenues of around $17,400,000 and expenditures of $13,700,000 in 1933-34.

Palestinian ports are increasing in importance as shipping centers, according to Vice Consul Hickok’s report to Washington. Steam vessels entering these ports in 1934 numbered 1,684 of 4,264,571 tons, as against 1,312 vessels and 3,223,959 tons in 1933. Automotive transportation is increasingly in importance, so much that it is having an adverse effect on the railroads. Despite the generally favorable conditions, the railways in Palestine continued to operate at a deficit chiefly because of the growing competition from automotive transport. To remedy this situation, two British experts have been engaged to study the problem and make recommendations.

In contrast with the favorable conditions in Palestine, the situation in Transjordan continues to be very difficult, it is reported to Washington. This is attributed to a series of poor harvests, owing to droughts, which have also affected the livestock.

The local income of Transjordan has suffered a decline. This reduction is blamed on the completion of the oil pipe line from Iraq, which furnished an important source of employment.

Dr. Abram L. Sachar, professor of history at the University of Illinois and national director of the Hillel Foundation, was in Washington the other day to attend a celebration in commemoration of the 800th anniversary of the birth of Moses Maimonides. He had occasion to address a group attending the celebration and in his talk compared the exile of Prof. Albert Einstein from Germany to the treatment of Maimonides by Spain. Present to hear Dr. Sachar talk, was Senor Don Luis Calderon, Spanish Ambassador to the United States.

In his talk, Dr. Sachar made the statement that just as the Spanish realized after Maimonides’ death that he was truly a great leader and philosopher and have now constructed in his native Cordoba a monument in his honor, so some day will Germany eulogize the teachings of Einstein.