British Mandate: A Survey of Palestine: Volume II - Page 727

CHAPTER XVI.

CONCLUSION.

206. As will have been adduced from certain of the foregoing data, the economic condition of the Arabs was very greatly improved by the war and it is as yet too early to determine to what extent such improvement will be permanent and to what extent it will go with the artificial elements through which it came about. The most important factors were the creation of a state of full employment so that in certain areas there was difficulty even in getting sufficient labour for the harvest, and simultaneously there was a largely expanded and increasing demand for local produce. The effects have been greatly to increase the spending power of the Arab community in general and, where the rural section is concerned, to permit them to free themselves from the burden of indebtedness which has in the past been so great a brake on Arab agriculture. A reflection of this is in the following figures relating to the two Arab banks :

1939 1945

Deposits 876,000 6,971,000
Advances and
bills discounted 457,000 5,256,000

During the same period, the Arab banks increased their paid up capital by about 6cxcv 600 per cent. This is but a single illustration of the wave of material prosperity, manifested in many different forms which overtook the Arab community from 1941 onwards. In the absence, however, of any reliable touchstone for distinguishing~ the enduring from the ephemeral the illustration will perhaps suffice to underline the general remarks made above.

207. It may appear that this note has been restricted wholly to what might be described as the credit side of the account and does not deal with what might be described as the debit side. In !act it attempts to demonstrate the balance of advantage which indicates real improvement in the lot of the Palestinian Arab. '!'he "debit side" raises a number of controversial questions. some political, some economic, which relate rather to the future than to the present and are accordingly out of place in an analysis of the character of this. It might, however, lead to misconstruction if no mention were made of certain important factors :

(a) The disproportion between the Arab and the Jewish share in industry. The following figures are from the Government census of industry of 1939 and 1942;

727