These securities, though registered, have not been approved or disapproved by the Securities
and Exchange Commission, which does not pass on the merits of any registered securities.
This Bond is one of the great historic docu
ments of all time.
It marks the fulfillment of biblical prophecy.
It marks the culmination of the five-thou
sand year march of an ancient people toward
its destiny. There has never been anything
This Bond will provide the sinews for con
tinuing the dynamic development of the
world's newest and fastest growing democ
racy. It will provide the means for the ex
pansion of irrigation projects, steel and
aluminum mills, enlarging the areas under
Further information, particularly financial information, i« contained in the Registration State* o w o
ment filed with the Commission and in a more complete Prospectus which must be furnished 111 flit
to each purchaser and is obtainable from the undersigned.
Or rn (> ImTi mmy b» placed at. oad heontwu afcCalaarf Irom: STATE OF IO I I A I I
JL.c Financial and Development Corp. for Israel I Imm/ p*"*" I BONUO I ““
1-0 BROADWAY, NSW YORK. N.Y. | Lb** LmBB
Two types of Bonds are offered at par as tallows:
(a) Interest Bearing Bondi Denominated os
Fifteen Year 3 i/ 2 % Dollar Coupon Bonds. Interest payable May 1 and Nov. 1.
Denominations: SSOO • SI,OOO • $2,500 • $5,000 • SIO,OOO • SIOO,OOO
(b) Capital Appreciation Bonds Denominated as
Twelve Year Dollar Savings Bonds. Maturity Value: 150% of issue amount
Denominations: SSO • SIOO • $250 • SSOO • SI,OOO • $2,500 • $5,000
The State of Israel $500,000,000 Bond Issue is intended to promote the economic de
velopment of the State. The proceeds of the Bond Issue are to be used for the purchase
of machinery, raw materials, equipment and other items designed to increase the coun
try’s productive facilities so that it may earn and save foreign currency. Os the total
amount, $205,000,000 is to be allocated for investment in the fields of industry and
power. The sum of $130,000,000 has been designated for agricultural projects; $40,000,-
000 for the development of harbors, shipping and railroads; $45,000,000 for trade and
services including the development of the tourist industry; and $30,000,000 for the
establishment of a government mongage bank for housing.
The balance, after payment of the expense* of the issue, is to serve as a reserve for
unanticipated projects or for increased expenditures for the designated projects.
The Government’s economic development program involves a total projected expendi
ture of $1,500,000,000, of which $500,000,000 is to be provided by Israel and other
countries, and the balance is to be obtained in the United States. The $500,000,000
State of Israel Bond Issue is the largest single source of funds for this program.
With immigration proceeding at the rate of 200,000 a year, Israel requires capital
imports to meet the large investment necessary to create permanent employment op
portunities and housing for the newcomers. A balanced ana mature economy will as a
This is not a prospectus or an offer to sell or a solicitation of offers to buy those securities. The offering Is mode only by the Prospectus.
from this historic bond
A RICH RETURN FOR YOUR HEART... A GOOD RETURN FOR YOUR PURSE
STATE OF ISRAEL. 9800.000.000 INDEPENDENCE BOND ISSUE
THE SOUTHERN JEWISH WEEKLY
Jacksonville Office: 137 E. Forsyth
cultivation, building new harbors and homes
and factories. Thus, the free people of Israel
and those hundreds of thousands awaiting
entry will be enabled to live productive lives.
You who buy these historic Bonds will be
making an investment of your money, cal
culated to yield a good return. You will also
be making an investment that will yield a
return of incalculable richness to the heart
The sooner you buy your Bond, the sooner
will Israel achieve its goal of economic inde
rule produce enough to cover the consumptive needs of its population and to provide
for some further investment to increase productivity. But under the best conditions, cur
rent production cannot begin to supply the huge capital needs of a population that is
increasing at the enormous rate experienced by Israel. Palestine and Israel, therefore,
have always had an adverse trade balance —like many young countries facing immigration
and development tasks, including the United States, Australia and New Zealand. As im
migration increased, so did the adverse trade balance. The import surplus served to meet
the investment needs of the economy. For 1949 receipts on current account were (ex
pressed in Israel Pounds, 1.L.) I.L. 20,600,000 and payments, I.L. 94,100,000. For 1950
receipts on current account were I.L. 23,800,000 and payments, 11.. 113,400,000.
It is one of the major purposes of the Bond Issue to improve Israel’s balance of
trade through the establishment of new industrial and agricultural enterprises and through
the expansion of production for export as well as for home consumption.
As of December 31, 1950, the funded debt was I.L. 114,200,000 and the floating
debt, I.L. 1,300,000. The figures do not include any Treasury Bills, because of their re
lationship to the Special Defense Budget which has not been disclosed for security
Israel has never at any time defaulted upon the payment of principal or interest on
The budgets of the Government reflect the objectives of the State of Israel to pro
. vide for the immigration and absorption of a large number of Jews. From May 15, 1948
to March 31, 1949, receipts were I.L. 28,885,000 and expenditures, I.L. 27,529,000.
From April 1, 1949 to March 31, 1950, receipts were I.L. 92,876,000 and expenditures
I.L. 93,800,000. From April 1, 1950 to January 31, 1951, receipts were I.L. 113,473.000
and expenditures I.L. 112,087,000. These figures do not include Special Defense Budget
expenditures or receipts from internal loans financing same.
The American Financial and Development Corporation for Israel with headquarters
at 120 Broadway, New York 5, New York, is the principal underwriter for the State
of Israel Bond Issue. The commissions or discounts are not to exceed 3%%.
Friday, November 9, 1951
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