British Mandate: A Survey of Palestine: Volume I - Page 352

CHAPTER IX.

99. Notwithstanding the depressed position of the citrus industry during the war years, the general prosperity brought to Palestine by the war and the large amount of idle funds in the country created a large demand for citrus estates. In consequence, many of the company's clients were able, by the sale at high prices of parts of their property, to redeem part or whole of their capital debts, with the result that, by the end of November, 1945, there were 315 loans outstanding for a total of £P.182,000. The company was able to pay a dividend for the first time in 1942 of 21/2% which was increased to 4 % for 1943 and 1944.

100. Following resumption of exports of fruit on a limited scale in the 1944/45 season, and the incentive to growers to rehabilitate their groves, there was a renewed demand for long term loans, and the company resumed this business in .January, 1945, with the result that 25 new loans aggregating £P.45,000 have since been issued. The rate of interest was reduced from 8% to 6% per annum with effect from 1st, January, 1944, and the penal rate on arrears was reduced from 9% to 7% per annum.

101. The company's position at 30th November, 1945, is summarised in the following table :-

Loans outstanding (315 in number) Cash on deposit with Barclays Bank, Jerusalem at an average rate of !% interest per annum

Cash in current account

Invested in securities in England at about 3% per annum Palestine Government Guarantee Fund invested in the United Kingdom in trustee stocks

£P.

182,000

220,000 19,000

27,000

150,000

102. In November, 1944, the company represented to Government that the Land Transfers Regulations of 1940 resulted in the company having to concentrate its activities in the "free" zone thus precluding potential borrowers who owned land in zones A and B from the opportunity of obtaining mortgage loans from the company. After consideration of these representations Government informed the company in March, 1945, that applications to take mortgages in zones A and B should continue to be considered on the merits of each individual case and that it was not possible to amend the Regulations so as to accord the company the right to buy in, either directly or through an Arab holding company, any properties in zones A or B.

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