The United Jewish Appeal of Greater New York today completed arrangements for a credit of $30, 000, 000 from seven local banks. Samuel D. Leidesdorf, New York USA treasurer, made the announcement following formal signing of the loan agreement by officers of the UJA and participating banks.
The credit exceeds by $9, 000, 000 the amount of the biggest previous financing of this kind undertaken by the United Jewish Appeal of New York. It will be used to help speed the resettlement in Israel this year of an anticipated 100, 000 or more immigrants from Eastern Europe, principally Rumania. Mr. Leidesdorf said that borrowing of such unusual proportions has been made necessary by the great volume of the current immigration to Israel of thousands of Jews leaving Rumania each month.
Banks participating in the loan are the Manufacturers Trust Company, First National City Bank of New York, the Bankers Trust Company, Chemical Corn Exchange Bank, Hanover Bank, Chase Manhattan Bank and Marine Midland Trust Company.
Representatives of the United Jewish Appeal in negotiations for the credit included Mr. Leidesdorf; Gottlieb Hammer, executive director of the Jewish Agency, the UJA beneficiary responsible for transportation and resettlement of immigrants to Israel; and Henry C. Bernstein, executive vice-president of the UJA of Greater New York.
Mr. Leidesdorf explained that the $30, 000,000 credit is being undertaken in line with UJA’s policy of seeking to keep down the long-run cost of resettlement and welfare programs it supports by providing as soon as required the funds for lasting solutions to the needs of the refugees aided. “Our experience has shown that delay in making funds available leads to unnecessary suffering among the people we are trying to help and tends to increase the cost of helping them, “he said.
He reported that many contributors have indicated in advance of the 1959 New York UJA campaign, which is now getting under way, that they will greatly increase their gifts this year, with some doubling and more than doubling their 1958 contributions. He warned that this upward trend in giving must be continued to assure that the bank credit will fulfill the purpose for which it has been arranged.
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