File 756/1917 Pt 1 ‘ARAB BULLETIN Nos 1 to 65’ [‎487r] (978/1240)

The peasants (crassly ignorant it is true), accept the paper-notes
in which they have confidence. Over 30 years ago, at the
beginning ot‘ the Jewish colonization movement in Palestine,
when the financial success of the enterprise was far from being-
assured, the young Jewish communities were faced by the
difficulties arising from the scarcity of small change ; and they
relieved the situation by issuing paper-notes of one and of a
half piastre. The peasantry accepted these “ bans," any amount
of them, in payment for their products or their work, though
the “ bons ” were not guaranteed by any bank deposit, bearing
merely the seal of the Community.
At the beginning of the war, the iknglo-Palestine Co., the
Zionistic banking institution, issued numerous “ guaranteed
cheques ” of 5, 10 and 20 francs each. They were accepted to
any amount by the public, and for their full value, as readily as
Government notes in other countries. In fact, these “guaranteed
cheques” helped to relieve the money market in Palestine in the
first months of the war. But the Government became jealous,
and abolished them, threatening the A.P. Co. with proceedings
for unlawfully issuing paper notes. This persecution not
withstanding, people, even now, prefer the forbidden “guaranteed
cheques ” to the Turkish paper notes, though severe penalties
have been pronounced against those who are caught refusing the
latter.
Even now the notes of the Ottoman Bank, issued before the
war, and guaranteed by its Board, are readily accepted, whereas
the recent ones are discarded.
The real reason why the Turkish notes are disliked is
because people do not trust this Government. The catastrophe
which followed the Turco-Bussian war (18^6-/7), when the
Kaimeh lost its whole value, is still in everybody’s minds. A
few fabulous fortunes were made then (the wealth of the Sursok
family originated in this way), but the general public lost money,
and 'thousands of powerful firms were ruined. That is wTiy
nobody cares to accept the new Kainieh.
As is to be expected from such a state of affairs, some
usurers get rich, by gambling on the Exchange. One gets
nowadays three or four.notes for one gold ponnd. Old debts are
paid in depreciated notes. Another business also has developed,
based on the good exchange which the Turkish paper note now
obtains in Germany. Normally the L.T. is worth about 18 60
marks ; nowadays it fetches 22*24 marks. It pays', therefore, to
transfer Turkish pounds to Berlin. The rate of exchange m
Austrian crowns is still more advantageous—thirty-two to thirty-
seven crowns for one pound. (/ •
The circulation of currency is very limited in Palestine ;
but as soon as a trustworthy Government comes in, hidden .corns
will appear again, especially in the Nablus region, and to some
extent, in the Gaza region. A few men, who had been unjustly