Israel Reports on Bank Withdrawals; Says They Are Only Two Percent of All Deposits
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Israel Reports on Bank Withdrawals; Says They Are Only Two Percent of All Deposits

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The withdrawal of deposits from banks in Israel during the last few days amounted only to 2,500,000 Israel pounds, which is not more than two percent of total deposits in the country, the Israel Office of Information announced here today on the basis of a report received from Tel Aviv. The announcement said that a marked tendency towards redepositing of these funds is now being noticed. The text of the report received from Tel Aviv reads:

“During the last few days economic matters have been in the forefront of public attention in Israel. Following detailed statements on the economic situation which were made by the Prime Minister and the Minister of Finance at the Mapai Party conference last week, an erroneous report over the Swiss radio ascribed to the Prime Minister the intention to freeze bank accounts and introduce compulsory government loans.

“These false rumors aroused considerable disquiet, particularly as they coincided with the introduction of clothes rationing and certain tension over the international situation.

“A limited volume of withdrawals of bank deposits took place, amounting in all to 2,500,000 Israel pounds. These withdrawals represent only about two percent of total bank deposits in the country, and there has already been a marked tendency towards redepositing of these funds.

“Public nervousness also expressed itself in a further considerable rise of the free market price for gold sovereigns. It should, however, be borns in mind that these quotations have no influence on, and no relation to, exchange rates and essential commodity prices, the latter of which have remained stable.”

(The Israel Cabinet was scheduled today to hold a meeting devoted to the economic situation. The meeting was also to be attended by economic experts representing various political groups, and great importance was attached to it by economic circles. At the time the Bulletin went to press no report had been received in New York as to the decisions adopted at the meeting.)

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