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Rare War Bond Poster of National Loan For Israeli Independence War 1948 “War Loan is Victory Loan”
The national loan was a voluntary lender to finance the expenses of the War of Independence, decided by the MINHELT HAAM (Pre-Israeli government), prior to the establishment of the state.
On December 18, 1947, a proposal was made to declare a “national loan” . At the second meeting of the MINHELT HAAM, on April 26, 1948, it was decided to hold a national loan in the amount of 5,000,000 Israeli pounds, in order to finance the campaign that the settlement has been in since November 29.
The public was asked to buy from the banks, starting May 11, 1948, loan certificates in which the buyer lent his money to the Jewish Agency, for a period of 5 years at an interest rate of 3%. The lender guaranteed the Keren Hayesod and the Keren Kayemeth LeIsrael their real estate assets and income.
Lender certificates were a tradable document and the public at all levels was called upon to purchase them. In a proclamation published on May 2, 1948, the People’s Administration called on the public:
“Participation in a lender is not a tax payment, but an investment of funds on a secure banking basis … Every Jew will see the provision of the necessary means for the struggle for our existence and our future as an absolute necessity. Every Jew will participate in the national lender to the fullest ability.”
The money of the national lender was used by the locality and the state in its early days to finance the heavy expenses of conducting the War of Independence. Following the declaration of the state, the national lender was followed by a number of lenders on behalf of the Israeli government.
Purchasers of loan certificates were promised a linkage of the exchange rate, three US dollars per pound.