Drive Launched to Sell $50, 000, 000 in Israel Bonds by End of 1958

The Israel Bond Organization launched today a campaign to sell $50, 000, 000 in Israel bonds by the end of this year, as the first step in helping Israel initiate a five-year economic development program.

Dr. Joseph J. Schwartz, vice president of the organization, announcing the launching at a press conference, said the drive to obtain an additional $50, 000, 000 in the balance of the current year was inaugurated in accordance with a decision adopted at the first international mobilization conference for Israel bonds which was held in Jerusalem two weeks ago.

Dr. Schwartz disclosed that the Israel Treasury was setting up a sinking fund in dollars to redeem the Israel bonds that will become due in 1963. He said these included the Independence Bond issue and the 12-year Savings Bonds sold in 1951.

He reported that the 1958 recession had not seriously affected Israel bond sales and that the campaign aimed to make up the “modest deficit” as compared with 1957 sales in the four-month drive, in which “the better economic climate” would be a helpful factor.

Dr. Schwartz said that the 350 delegates to the first International Israel Bond Conference agreed that the basic activity for the Israel bond effort would be to narrow the gap between Israel exports and imports. He stressed that while exports had been increasingly regularly during each of Israel’s ten years, to a peak of $210 million in 1958, imports also had been increasing to an annual rate of $550 million, representing a gap of some $350 million, which he called “the most serious financial problem confronting the Israel economy.”

He said the special campaign to sell $50, 000, 000 in Israel bonds in the United States during the remaining four months of 1958 was part of a five-year program to provide the capital to boost Israel’s exports to $400, 000, 000 annually.

He emphasized that with an anticipated population of 2, 500, 000 by 1964, which he termed a “conservative estimate,” based on immigration and natural increase, Israel officials planned to intensify development of the Negev. This program, he stressed, also would require huge sums of capital.

In reporting on plans for increases in Israel bond sales, Dr. Schwartz pointed out that Israel had sold more bonds in the United States than any other Government with the exception of Canada. He said the average sales had been $50, 000, 000 a year and that for the five-year Israel development plan, the Israel Bond Organization planned to increase sales to an average of $70, 000, 000 a year. He explained “we want to duplicate in the next five years what we sad in the first seven years, ” for a total of $350, 000, 000 by 1964.

Dr. Schwartz announced that among the Israel leaders who would visit the United States during the special four-month campaign would be former Prime Minister Moshe Sharett, Israel’s Ambassador to France, Jacob Tzur, Col. Chaim Herzog, until recently head of Israel’s Southern Command, and others.