Sir Isaac Wolf Son Urges Chicago Bankers to Invest in Israel

Sir Isaac Wolfson, prominent British businessman and philanthropist, today urged Chicago banks and financial institutions to participate in a $30,000,000 stock issue of the Development Bank of Israel, which was established five years ago as a joint venture by the Israel Government, the country’s major commercial banks, the Israel Manufacturers Association and the Histadrut, the Israel labor federation.

Addressing a luncheon in his honor tendered by George S. Sax, chairman of the board of the Exchange National Bank and attended by Chicago’s leaders in business and the professions. Sir Isaac, who is currently touring this country on behalf of the Israel Development Bank, said that during the five-year period since its establishment, the bank’s resources increased from 61,600,000 pounds to 229,600,000 pounds. He said two thirds of the stock issue would be raised in Israel with the remaining $10,000,000 coming from abroad.

“The governments of both Israel and America have continued to be active supporters of the bank, ” he reported. “The Israel Government has invested heavily in the share capital and the United States Government has made large sums available to the bank through its agency for international development and from funds deposited in its favor in Israel. The bank also acts as the Israel Agent for the United States Aid Program in loans made directly to industry, ” he stressed.

Although both governments support the bank financially and recognize it as the main financier of Israel’s expanding industries, they do not participate in the actual administration of the bank, Sir Isaac said. “The bank’s decisions rest on sound business principles and are taken by a board of directors appointed by the shareholders. Any shareholder or group investing $1,500, 000 or more is entitled to elect a nominee to the board of directors,” he declared.