Change in Israel Bond Drive Effective; Dr. Schwartz Takes over

A new organization, with Dr. Joseph J. Schwartz, executive vice chairman of the United Jewish Appeal, as its vice president and directing head, assumed responsibility today for the sale of Israel Bonds in the United States and other parts of the free world.

In accordance with an agreement with the Government of the State of Israel the bond sales organization was officially transferred today to a newly created agency known as the Development Corporation for Israel. The prospectus of the Development Corporation, filed with the Securities and Exchange Commission, is dated May 15, the day the agreement was consummated with the State of Israel to make the D.C.I. sole underwriter of the Israel Bonds.

A foremost leader in the field of large-scale rescue and resettlement of Jews in Israel and elsewhere during the past decade and a half, Dr. Schwartz succeeds Henry Montor as chief executive officer of the Israel bond campaign. Since May, 1951, the campaign which was carried on during the past four years under the aegis of the American Financial and Development Corporation for Israel, sold a total of more than $190,000,000 in Israel bonds.

Outlining the purposes of the Israel bond campaign, Dr. Schwartz said: “Economic power is the keystone of Israel’s progress and its military as well as social security. Therefore the continued sale of Israel bonds on the widest possible scale represents an indispensable factor in its program to achieve peace and strengthen its democratic institutions.

“Because Israel bonds have become a major instrument in the economic development of Israel and because they have proved themselves to be a sound investment whose results are evident in the growth of many vital industrial and agricultural enterprises, it is our immediate objective to enlist all elements in the Jewish communities of the United States in active participation in the Israel bond campaign. On the basis of past experience, we are also confident that non-Jews will continue to invest in Israel bonds in increasing numbers.

“I believe that the people of Israel are within reach of their goal of economic self-sufficiency. To the extent that we help them achieve this goal in the near future, we shall be hastening the realization of the basic ideals of an independent, dignified and progressive democracy of Israel.”

NEW BOARD TO DISCUSS BLUEPRINT FOR CAMPAIGN PROGRAM

Dr. Schwartz announced that the blueprint for the campaign program will be discussed at the first meeting of the new executive committee and the Board of Governors of the new bond organization which will be held at the Waldorf-Astoria Hotel on Sunday, May 22nd. Discussing the immediate activities of the drive, he declared:

“Although this is the first day of operation for the new bond sales organization, we anticipate no delays in getting under way. As a result of the cooperation of all concerned, there has been no disruption in the campaign. The smooth changeover assures an uninterrupted functioning of our campaign machinery not only at national headquarters but in most of the country.

Since January, 1951, Dr. Schwartz has directed the operations of the United Jewish Appeal as its executive vice chairman. He led the UJA in raising more than $365,000,000 in nation-wide campaigns during that period. For twelve years prior to 1951, Dr. Schwartz served in wartime and post-war Europe as head of the vast relief and rehabilitation operations of the American Joint Distribution Committee. As chairman first of the JDC’s European Executive Council and then director general of the agency’s far-flung operations abroad, as well as UJA leader, he helped shape one of the greatest mass migration movements in all Jewish history. Under his direction, close to a million men, women and children from distressed areas in European and Arab lands were transferred to Israel, the United States and other democratic countries.