J. D. B. News Letter

thou###### who all carried away ######estine’s economic possibilities. In the course of the year, between six and seven hundred Jewish families of independent means, possessing £P. 1,000 and upwards, settled in the country as against 235 of the same category in 1931. America was in the lead in supplying immigrants of this class.

New investments of Jewish capital in Palestine during 1932 are estimated at £P.3,500,000, Mr. Neumann said. Deposits in the banks are estimated at five million pounds, of which there are £3,500,000 in Jewish banks (notably the Anglo-Palestine Bank), and the rest in non-Jewish banks, Barclay’s Ottoman Bank. As a direct result of these deposits, the interest on deposits, especially in the bigger banks, was reduced. At the present moment credit institutions are considering the possibility of reducing the rate of interest to borrowers as well.

There was also a steady growth of the economic assets of the country from within, notably in the domain of agriculture. The maturing of extensive tracts of citrus groves is mainly responsible for this. The comparatively extensive investments which were made during the boom period of 1923-1925 are now bearing fruit. If we take the new criterion for calculating exports which the Government has adopted, we find that the value of the general exports of Palestine during 1932 will amount to half of the value of imports.

In industry a similarly satisfactory state of affairs obtains. On the one hand, the increase in the Jewish population in Palestine serves to extend the absorbing capacity of the local market. On the other hand, the standard of living of each new individual increases with the improvement of the general economic position. In addition, the Jewish consumer abroad is also beginning to appreciate more extensively the commodities manufactured in Palestine.

Citrus planting has achieved a new record in the course of the year. In the Jewish colonies some 30,000 dunams were planted, and the total Jewish area now planted is about 100,000 dunams. The extension of plantation operations among Arabs is in progress at a somewhat slower pace but considerable activity is being registered in the vicinity of Tul Karem, Ramleh, etc. Citrus export during the last season amounted to 3,630,000 cases, of which 43 per cent were from Jewish plantations. This season the export will probably exceed 4,000,000 cases, of which about 50 per cent will be from Jewish groves.

A serious obstacle to this important branch in Palestine export trade was the increase in the customs duties in Great Britain following the Ottawa Conference. The seriousness of this for Palestine can be gauged from the fact that until now Great Britain has absorbed 70 per cent of the total citrus exports in Palestine. However, great improvements introduced into the organization of shipments, lower freights and the capturing of new markets, have served to lesson the danger created by increased British duties. At the same ### secure for Palestine the benefits of Imperial Preference.

Twenty-one new factories were established in 1932 by Jews, including two hosiery factories, two for iron network for fences, two for citrus juice, one for candles, one for nails, one for tins, etc. Existing industries are continuing to expand and also afford a suitable opening for investments by extending their scope.

The exploitation of the mineral resources of the country is also making rapid strides. The Palestine Potash Company has opened a second plant for bromides. The production of potash has expanded considerably and the number of workmen engaged has increased from 300 to 400 this year, despite the fact that many workmen put in overtime. A company has been created for the exploitation of the Gipsun deposits south of Gaza, and the concession was granted to Mr. Williams, a British contractor. A group of Arab capitalists have obtained a concession for prospecting for oil on an area of 100 square kilometres southeast of Bersheeba. Arab industrialists have also been displaying considerable initiative and activity at Haifa.

At the beginning of the year the Hydro-Electric Station of the Jordan was completed.

Special mention should be made of the construction of the Haifa Harbor and the works carried out by the Iraq Petroleum Company.

A new aspect in the economic life of Haifa is the issue of stocks and bonds by various companies.

The situation of the farmer, excluding the plantation zone, continues to be unsatisfactory, although not to such a marked extent as in former years. The increase in the Customs duties of cereals and flour during seven months of the year, June to December, when local produce is being harvested and put on the market, coupled with an imposition of restrictions on the import of cereals and flour, have led to a rise in local prices. Even after some slight decline afterwards a generally high level has been maintained. The Government has this year come to the assistance of the small farmer by commuting 70 per cent of the tithe (many of the poor felaheen were exempted altogether) and by the granting of loans to the extent of some £P.71,000 for seeds, livestock, fodder, etc.

As against the noticeable improvement in some of the Arab villages of Palestine, the situation in Transjordan is going from bad to worse, Large sections of the population there face actual starvation due to the lackward methods and lack of capital.

The opinion of many economists, Mr. Neumann concluded, is that Palestine is entering the year 1933 with a fairly good prospect of continuing prosperity. However, one should not lose sight of a number of factors which should be considered in all seriousness. First of all, there is the question of organizing our exports, consolidating our position in existing markets and capturing new markets. In this respect Palestine has met with formidable obstacles; the tariff wall in Egypt, protective tariffs in Great Britain, restrictions in imports in a number of countries in Europe. But despite these difficulties Palestine exports are extending in such directions as lesser obstacles obtain, notably in Syria, Iraq and the Jewish consumers in other countries. In addition, there is still hope that Palestine will finally secure the same standing in Empire tariffs as other British Dominions and territories.

Another problem requiring serious attention is the plague of speculation which always appears during periods of increased immigration and economic progress. This evil may bring serious consequences in its train if public institutions should fail to exercise the necessary vigilance and fight it actively. For many reasons, the present speculative activity is not as alarming as the speculative wave in 1925. The work is proceeding on a much sounder basis than it did then. Nevertheless, the outcome cannot be left to the free play of uncontrolled factors. There are signs that responsible public bodies see the dangers and are beginning to deal with the problem.

To be sure, the present gratifying development which permits the immigration of a thousand and more per month cannot solve the problem of many more thousands of Jews in the Diaspora who are eager to reconstruct their lives in Palestine. This development indicates the presence of a solid foundation. Its extension is largely in the hands of the Jewish people, Mr. Neumann concludes.