(Jewish Telegraphic Agency)
An explanation of the present economic situation in Palestine, contradicting reports that there is a financial crisis in the country, was issued by the Economic Department of the Government in the “Commercial Bulletin.” the official organ of the department.
“From reliable reports received in this Department, it appears that the local industries, with very few exceptions, did not suffer much from the general depression. It is therefore considered that the crisis is only momentary and a complete recovery will soon follow,” the statement of the Economic Department declared.
“The Palestine Press has been lately paying considerable attention to the economic crisis which the country is passing through at present.
“As a matter of fact. however. the ‘crisis’ in question is only a tightness in liquid funds now prevailing in the local markets. Dwellings for the large number of western immigrants of independent means that entered the country during the years had to be provided: land buying for speculation purposes reached very high proportions: trades in all articles and particularly building materials have indulged in extensive forward buyings abroad in order to meet the increasing demand of the local markers.
“Thus considerably large amounts of money were invested in buildings, land buying, and forward buying abroad in a relatively short period causing the present stringency in liquid capital which is now now more or less reflected in all commercial activities of the country creating the socalled ‘crisis.’
“The depression is more acute in Tel-Aviv and Jaffa whereas it is not appreciable in the other districts, Tel-Aviv and Jaffa being at preseat the building and commercial centres of Palestine.
“Although a small number of failures occurred. the total amount of liabilities is relatively small.
“Measures to prevent speculation were taken by the Credit Institutions the Chambers of Commerce and Trade Unions: and as a result the mades are now restricting their buyings abroad to a minimum.
“It is understood that the local Banks have undertaken to help trades in granting credits,” the statement read.
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