Palestine Hopes for Political Solution to End Economic Stagnation, Insecurity

The Holy Land is entering the new year looking anxiously forward with the hope that some political solution will be found to end the economic stagnation and insecurity in which it was mired during 1937.

Despite the deepening depression, many believe slight encouragement would serve to start an upswing, pointing to notable progress made by the export trade last year which, despite conditions, was the largest in the country’s history, being estimated at more than £5,700,000 (about $28,500,000) as against £3,625,233 in 1936. Imports for the year totalled some £16,000,000 compared to £14,000,000 the previous year.

Outstanding was Germany’s rise to first place as a source of Palestine’s imports, supplanting the United Kingdom with an eleven-month total of £2,418,291 against £2,325,979.

Bank deposits as or October 31 totalled £16,394,000 compared to £17,081,000 the year previous. Outstanding credit rose from thirteen to fourteen million pounds. Monthly average of building construction permits for the ten-month period ending October 31 in Jerusalem, Jaffa, Haifa and Tel Aviv, the four principal cities, dropped to less than £50,000 from more than £60,000 in 1936.

Government revenue for the year ending next March is estimated at £5,000,000, of which £2,200,000 will be derived from customs. Expenditures are expected to be about equal.

On September 30 last the total number of Jews in the country was officially put at 389,504 in a general population of 1,328,072, but there are conceded to be at least 10,000 more Jews. Jewish immigration for the year totalled 11,000 as against 30,000 in 1936, reflecting curbs resulting from Arab disorders.

During the year, 15 new Jewish settlements were established and 500,000 trees planted covering some 1,300 dunams (about 260 acres). Jews increased their landholdings by 25,000 dunams, mostly through purchases by the Jewish National Fund, Zionist land-purchasing agency.