How The Declaration of War Effected the People of Palestine
WHEN the news of the war first came to Jaffa, it had no immediate economic effect. But we feared that many of those who drew their sustenance from Europe, would be left destitute. But when on August 4, 1914, a Moratorium was declared, and the Anglo-Palestine Bank stopped paying—there was general excitement and panic. Nobody knew what to expect. Factories and building operations stopped. Stores stopped giving credit. The needy could not even get bread without showing the money in their hands.
Let me give an instance of what happend at my machine shop and foundry: Pay-day comes every two weeks. It was due on Thursday, August 6th. I went to the bank on August 4th to draw my pay. I was told there was a moratorium and I could not get the money. I] returned to the factory to notify the men that work would stop for a few days until some arrangement would be made to get money to pay them. The following day I went to the bank again and explained to Mr. Hoofin that he must give me some money, for we could not leave fifty-two workingmen without their wages. He said the best he could do, would be to give me 500 francs. I took that money and collected more among our customers. Our pay-roll was at that time about 2,500 francs. We explained the existing condition to our men and they accepted 50%, the rest to be paid later.
ee ee Fe Ar" ee ee ee ze ee The following Sunday, we opened our works, but we laid off 25% of the men. The rest of them worked half-time. The proprietors of the factory held a meeting, and decided to keep on working as long as we could and keep on as many men as possible. We would not give credit. All our clients were to be notified to make part payments weekly, as their work progressed, with which funds we would pay the workmen. We also agreed to take in all kinds of work at cost, just to keep the men going and as we had quite a lot of work from Arabian clients whose custom is to keep their money with them and not at the Bank, we adjusted our matters satisfactorily. In the same manner, other people tried to adjust affairs, but as their business was mostly with Jews, they had greater dificulty. We and other business men also took in exchange for work, food staples, such as flour, beans, sugar, rice, etc., and issued it at cost to our men. This was a saving to them, as foodstuffs had begun to soar in price. In general, the bank paid 100 francs gold a week, to people who had large deposits and smaller sums accordingly to small depositors. This kept on about a month, then it was cut down to 50 francs and subsequently to 25 francs per week. As the supply of gold was diminishing and as there was no possibility of getting in new gold from outside, the bank decided to issue certified checks against the bank- deposits. At first storekeepers would not accept these certified checks, but later they were persuaded to do so and the bank also undertook to help them out with gold, to make payments, such as custom duties, freight bills, etc., where gold only was accepted. The checks had the necessary government stamps on and were issued with the knowledge and consent of the government.
a Er A a a Mc 6 Pure Ah The planters of Judaea, had to face similar conditions, but as this was the season before their products were moved, and as they had to pay their men and keep their irrigation plants working and were accustomed to get money from the bank against next year’s crop, they were left without means. However, the farmers of Gallilee were better off at that time. They had little to pay and were getting a good price for their wheat and foodstuffs, which were daily increasing in Drice.
The mass of the people who had no savings and no regular work were severely affected. All the institutions, Zionist and others, suffered from the first day, because their source of funds was cut off and they were not prepared to meet this emergency.
When the war began, many boats stopped calling, others called only irregularly at the port of Jaffe and brought in less supplies. In general, Europe stopped shipping and goods that did arrive, could not always be taken out through lack of gold. But the general opinion of the people was that there were enough home-products to keep the country going. There was plenty of fruit, there were wheat, meat and vegetables, t00. There was therefore no fear of starvation, The main difficulty was to obtain money to buy these, and to get enouzrh money to maintain the noor.
Then the mobilization of the Turkish government began, and they started to commandeer by daily raids almost
all stores and farms and flour mills; no one knew where this would stop; it was done without order, new edicts appeared every day, and the real calamity began. They took foodstuffs, clothing, medicines, horses, wagons, fancy goods, ladies' garments, children's shoes and clothes. They took things not, as the government commanded, for military purposes, but in undisciplined, high-handed fashion, anything that came along. They also forced shoemakers, tailors, carpenters and the like to work for months at a time without food or pay, and their families had to be supported by relief measures. They even commandeered their tools. If a workman did not comply readily or protested, he was beaten.
All this started as soon as the capitulation laws were annulled, September 18, 1914 and became intensified as Turkey drew nearer to participation in the war.
at he ee a re ee Er Mt ee u er Se To meet the conditions aforementioned, Dr. Ruppin, Dr. Chassin and Mr. Hoofin, were organized as a committee, to ask Ambassador Morgenthau to try to get $50,000 in America as a loan and for relief work. Later Mr. Morgenthau telegraphed that he had received the money and would send it to them at the first opportunity. He told them to get ready and organize a relief committee to handle this money, as follows: Dr. Ruppin, as chairman, Ephraim Cohen and Dr. Aaronsohn, to work under the instruction of Dr. Glazebrook, American Counsul at Jerusalem.
eu hhsuigsinnt gef eur Arche nn Dr Ruppin asked me to go with him to Jerusalem and help him organize this committee, which I did. I introduced him to the American Consul and we discussed with Dr. Glazebrook the policy of the committee. Mr. Aaronsohn could not come at first. After a long discussion it was agreed that the committee should consist of Dr. Glazebrook, Dr. Ruppin, Messrs. Aaronsohn and Cohen, and the last named three men to be the administrative heads of the districts. These districts should form local committees also for the distribution of the funds. Dr. Ruppin was to administer the Jaffa district and Judea colonies. Mr. Aaronsohn of the Haifa district and Gallilee and Mr. Cohen for Jerusalem and the surrounding country.
The Jaffa local relief committee consisted, as far as I can remember, of Dr. Ruppin, Messrs. Diesenhoff, Bezalel Jaffe, S. Rokeach, Shenkin, Idelson and myself. There were other members whose names I don’t recollect. The local relief committee decided to appropriate a certain amount monthly for existing organizations which were formed for charitable purposes at the begining of European hostilities, of which Mr. Diesenhoff was chairman. This 'organization was to distribute the necessary charities for private people and institutions. The society appointed the followinz sub-committees:
ei heat - A rk ce Kae uhr Labor Committee—To create work and advance money to responsible parties for work. Mr. Wilbushewitz and Mr. Blumfeld were on that committee.
They were to estimate the value of labor and the value of the material and present their conclusion to the Relief Committee, which would either approve or reject it. Money was to be lent for labor only, but not for material. A sufficient guarantee would also have to accompany this that the money would be paid after the war.
The Loan Committee consisted of Mrs. M. Kahan, Goldfarb, Chodorowsky and myself. We lent money on valuables, gold, silver, brass, notes, checks, drafts, houses, lots, etc.
Valuables were appraised at 50% of the lowest markets rates, and the money given to the people in weekly instalments, in accordance with our cash balance, no matter what value the article had. Before I left, our cash balance was very low, and we were issuing 25 franc weekly on larger values and ı5 franc on smaller values; during the last days we cut down still further to 15 franc and Io franc weekly and less, respectively. In my opinion, this was one of the most important branches of the relief work. It helped out the best people without their having to resort to charities, and the money was absolutely safe. To my sorrow, the local relief committee did not appropriate enough money for this branch and many people who were able to pledge their valuables had to be refused help. Up to the time I left they had only allowed 7,500 franc for Ha Milvah. I must confess that in the end, I could not always stay through the ordeal of the loan work. The demand for relief was so great that it was heart-breakinge.


