Document 6425184

JOINT DISTRIBUTION COMMITTEE
,„,.„
PARIS - FRANCE
Fo. 7 en route.
'
Vienna, April 12, 19;.Z.
Mr. I. Rubinstein,
.Hucharest, Rournania•
My dear Rubinstein:
Although I have been informed by a recent telegram from Warsaw that you are due to arrive here for a
conference with Ete on April 16th, so that you ?;ill probably
be here before this letter reaches you, I shall, nevertheless, write this letter %•-. you for the double purpose,first, of completing the record for the infarction of Kew
York, and second, for the purpose oi clarifying the subjects therein discussed as a basis for the conference we
shall have on the 15th.
I first desire to acknowledge receipt of your
iollowin:, letter« which have reache ran at different points
Curing &y journey since I left Paris on '•Jarch ninth last:
Pec.
167,
lfiO,
193,
15!-, 156, lev6, 161, 162, 163, 164, 165, 160,
168, 169, 170, 171, 174-P, 175-R, 177, 179,
1 M , 182, 183, 184, 1 8 % If6, 167, 165}, 190,
194-K, 196;
also the following: telegrams?
Bos. 6, 7, 8, 9, 10, 11, 13, 14 and 15.
'•"hose letters or telegrams -afrose numbers do not appear
above have thus far not been received.
Ko. 14, on the
other hand, seems to have been use-* twice, i.e., once on
a telegram dated '.(arch 24th, beginning "finance Minister
turned over application taxes, etc, eteM» an<> the second
time on a-telegram dated April Sri, beriruiin? "Obligation
for fl'),o )0 syndicate si-jnei stop etc. etc.,"
Before taking up the various maiberfj treated in
your letters, permit ae to express* Lo you \n$ extreme delight at the wonderful progress indicated by your various
reports to have loeen made by you since you returned from
Paris.
Uhe development of'tlie work proves that you now
have, in your omi mind, a very clear and definite idea of
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-2-
what you d e s i r e t o accomplish, and the r e s u l t s thus f a r
obtained by you show t h a t you a r e meeting with success.
Accept my c o n g r a t u l a t i o n s .
I.
3YWPIC,?]5 oy JEWISH CQ-"^y.P.'/TI.V*;S I " Bh^SAR.tPIA
1 ,T,,._,(?:• AfT3b •):' J'^BI? rrcic
This ru.tter v as touched u^on in i.^ l.;. Lter of instructions, '. ec, i6~P, oil pais, nine-,, arid treated in your
letter, . ec. 153 of "sich fourth.
In {;i;is letter you communicate to me your desire to re»suve youx* headquarters to
Kishineff rather than to Czernowita.
I have already given
you my approval of this iiy wire ,-:.ent to ycu fro.:. ...orlin on
ny -.ray to F<iga.
As you probably understood, I aerely augmented in my letter of instructions Czernowitz rather than
hiahineff out of consideration for yourself axul family, believing, as I did, that you v,'o--a.'. find the social atmosphere
of Czerno v'ita more congenial than Kishineff.
.h.ere is no
doubt, bxmever, that frow the viewpoint of the work, Kishineff
is very usuoh preferable to CzernowitE, and I an glad that
you have decided to go there, although oi'-hf-r Osernowitz
or Kishineff would be an immense Isjprovement over Bucharest,
where you are at present.
I consider the question of your
removal from Bucharest of the very highest importance and I
therefore request that you wire me a* waee ao soon as you
have actually moved,
2.
SYKPICATS DEFICIT
The question of the deiieit of the Syndicate ia
treated in ray letter of instructions, '-ec. 46-F, page 28,
and fuller data an the subject nr& <;o be found, in the memorandum of the conferences of yourself, *'r. Viteles and the
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-3*
writer, held-, at Paris on February 23 and 24th. From the data
thetn eupplie.: by you, it appeared that among the items making
up the total deficit as figured by us, there was one of
"organization expenses", consisting of Lei 50,l67.o:>. In
your wire No. 6 of Tiarch 9th and in your letter 158, you Inform me that the Central Assembly of the Syndicate has decided
to assess the several societies in the sum of Lei 107,591,50,
representing the clefinit as shown on the books of the •Syndicate,
and to spread the organization expenses of Lei 120,167 oyer a
period of five yG&Tn,
Kay I ask you ki dly to supply me with the
information as to how ajnd when the difference in organization expenses between the Lei 50,167 as shown on Sept. 30, 1 "521 and Lei
120,167 as shown on Dec. 31, 1921 was incurred, as for the chert
intervening period, this difference, amounting to Lei ?"?,";: /, is
quite considerable.
3.
EBFICIT Off IKBIVirJAL 8QCX.:IT 13^"
The mere enactment, however., b • the Syndicate of a resolution saddling its deficit upon the in.iivi<hial cooperatives
does not solve this problem practically, especially in view of the
fact that, as you report, in your letter 162, moat of the cooperatives are themselves in deficit.
The question arises, raid I hereby request you to furnish me the required in):ov?:> at ion - "how are
the several cooperatives goino: to cover, first, their own deficits,
and second, their share of the Syndicate's deficitJ" From your
table it seems that of the 17 cooperatives which have ans- ered
your question, 11 admitted that they are confronted with a deficit.
In addition to these, it is fair to assume that the 0 cooperatives
^hich. have not ana ered, also have a deficit.
That would mean tha
of the 25 cooperative®, 19 are in deficit.
Of the 19, only 4
have indicated to you an intention of cohering their deficits by
assessments upon .heir members.
This presents v* very serious prob
lem which should eu^i.e a great deal of your attention in the inmediate future,
4.
LOAN TO O^i.ra SYKP1CATB
This matter was treated on p.'v-e 35 of my letter of instructions, 46-P, arid I was very hap,\y to learn fror your Rec,
156 ti at this matter iiaa been definitely and finally settled by
the Orhei ?yn ;icate Aiaving repaid the amount In full,
I note
tnat you will exercise your best eflortn to prevent any similar
transactions taking place hereafter.
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
.4.
fo
"I"CONTINUANCE Off CONSUME OPERATIONS
This subject is treated on page 28 of my letter of
instructions, and 1 am pleased to learn from your Pec, 158, and
particularly from your very excellent report, marhe^ ' ec. 162,
tiiat the Syndicate has resolve! to discontinue all consume opera- /.
tions and to liiiihate its ^rooe-l warehouse.
I am sorry, how- U
ever, that the several individual cooper reives have not been as *B
categorical in their decision to severally disocntinue such op- \|
erations.
It is, however, retry gratifying to note i..;at con1
siderable progrcc-3 has been made in tnis direction, ax r?i\own by 11
the fact reported by you that of the 2h cooperative p.wcie ties,
m
3 have already discontinued and 11 have vote' tc- discontinue such n
operati ••na.
1 alar note that a r a solution was adh--pU; by the
"
General -..'••-•vii.bly, t..a\. oil cooperative societies shu-'la b« obligate',- tofti°icontinueconsume operations as soon is Utey are
supplied with f>.»r:ds r-.uf f. 1 :;i -nt to yiel«-i SUCJ proJ it;= hroc: interest
on i -.na ^ I m c p* wi.lh ,v*.e t.<.';/. sell -s^atainiii;'..
In view of the
lact th't, •'.?• I M!:--..IL irh.'ora you helav, tr.o h'ecjn.-itr-uctioft Commit tee Y.**z appiovel the -ranting of a n.r,? losn of :'l-'-vr:"'' to the
cooperative systaat of 5es*arabia, i believe th.Mt yo;i ouaht to insist as a condition aroco-leat t,o L,a m.^t ng of sao:o new loan, that
all coceerntivee belcngii;g to the h.yn;-j.;:aii-3 entirely abandon all
consume operations.
Incidentally, I noue that you account altogether £s to this question, for 1" cooperatives, of which 11
voted to discontinue, 3 have already ^iecontinued, and 4 voted
against discontinuance of consume operations.
his leaves 7
cooperatives unaccounted for.
'Hay I ask that you supply us with
information as to such 7 remaining cooperative.'.,
,
If- T - , .:..-.'.t ruiti.
The question of the interest rate which the several
cooperatives shall be permitted to c, ar :e individual borrowers
has*been treated on uage 32 of my letter of instructions, and
touched upon in your letter .156 and in your excellent report
above referred to, marked 162.
Without within-" tn nnter into
any prolonged nnd subtle argumentation on the ^ubj.^ct, I desire
to draw your attention to thu fact x-hat in the ovidunces of indebtedness • ioh th..: Syndicate £?ave to u-. on behalf oh, and with
the full knowledge of, eac> 01 the subsidiary organizations,
they, i.e., t) e Syndicate and *uch subsidiary organizations, have
clearly conferred on us the rlaht oh er«scribing to them the maximum interest that they may m arge and have obligate;r themselves
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-5not to exceed such rate.
tJnder the circumstances, thay cannot, at the present time, put forward any claim 3uch as you
seem to infiinate is the case, to the effect that the fixing of
the interest rate is a function exercised autonomously by the
several organizations at their general meetings.
On the contrary, the several organizations, as v/ell as the Syndicate, have
clearly ceded this riaht to us, and I believe it would be advisable
for you to make it perfectly plain to them that the J. .C. does ,
not propose to relinquish this right or tc submit to the least
/
abridgment of it; nor is it necessary for the T.'.C. to apolAgieel
gor bavin?: demanded this ri ht or for seeking to exercise it.
In making the loans to the Syndicate of Cooperatives, tae J.'-.C.
pursues two purposes, of which one is secondary in importance
to the other. *?he least Important of these our oees, although
of considerable importance in itself, io to assist tiie cooperative societies of i'osoarabia tn revive H;V\ re-e..<tabliah tiiemselves - - but U e mor.t important purpose pursued by the JY"<.C,
is the; oooialiy ,'ivrx. broader one of furni.sl.inr; credit in United
amounts at. a ncsrinal rate of interest, to the laiy e mass of Jewish war-sufferers in hesr.r.rabia, o ose oo a..,; ,1c equilibrium and
means of existence nave beers disturbed hy the war.
In order,
more effectively, to carry out this aoxe i,a ortant purpose, it
is necessary that the -T.P.C. reeerve itself t h e m.:ans of insuring
to the individual borrowers, the possibility cf obt/.i. ire these I
ere hitr> at a rate of interest consistent aita the
the intentions of the donors of the funos of the "h.D.C,
Fnr those reasons and even irrespective of any expression of ooinion from New York, I wo nit! be inclined to declare myself dissatisfied with the action taken by the Syndicate whereby
it places tec aaxJ u.a interest rate at twelve ;er cent a year,
olus a six o • r cent per annum corau.i-seion.
hut in view of the
definite >:t«ind taken"by ^»ew "York in cable 194 oi April 3rd, which
you will fln.i reproduced below, the matter bar. bo.«i taken out of
our bands so that it were useless; to purrf.ie the ar;'u*ent. hew
Yori deeires th»t the inters -.t rate >:.<> l/aa ^idi-al oorro vers be
fixed ?i twelve per oerit, plus a fl. -t 1% sexvice cuar^y.. As you
will recollect in my I-r'T,ar of instructions, T provisionally reco.-morv'- - pendin;; action by "ov v ork - a t^o per cent service
charge, -ri^ucih^'fchot - the loan?; avar.h:;in.; si-* months - the
service charge wooio actually yi?lC
i'o>ir pav.- cant a year.
The
tertuetV-m of'th* oorvief* aV-ar-o "ravi t-.v . percent ta one per
cent -/oulri result in i yield of abcatl two per cent a year - figuring that the loans ••»o-ild average six a.>:aths.
I wo a ? therefore
request that before raho rp: the xiea loan t •> lho .op;-;...? .-ate available
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
to i t , y o u reach a clear understandin w i t h r e f e r e n c e to the
interest rate a n t h e following r e s p e c t s :
(1) Secure a renewal in u n q u a l i f i e d terms of t h e r i $ v t of I
the .T.n.c., from time t o t i m e , to f i x t h e interest rata
as granted In t h e evidences of indebtedness taken b y m e
for t h e first l o a n , a n d m a k e sure that t h e individual c o operatives regard this obligation a s a provision of p r a c tical force a n d effect a n d will at all ti »es accede
b y t h e d e c i s i o n s reached b - uhe h.' . 0 . is, this resoect.
(?) N o t i f y t>•<••-. that lor th.o yeai.- 1 2 2 2 , the J.h.O. h a s
fixe J t h e interest rate to b o r r o w e r s at twelve ,. or cent
plus a flat service chtargp of one per cent :;er .loan, or
if ti ey prefer, a couaaission of two p e r cent ;-.er aiuTom
all l o a n s .
7.
l-'Tv^hPT.TIATh.PAYAJri;!! TO ';h,.^,-.'Vh . Q r _ ,../>£;
!
JP. _ ••" 1 h' •'.tA'.VlVKS
T note from your letter 1 0 2 that it w a s decided to i n crease t h e interest r a t e to b e charred b y the Syndicate to t h e
several cooperatives o n l o a n s m a d e to them fror. 6> to 7 $ . I
must h e r e again repeat that under- present conditions a n d considerinc the limited range o f a c t i v i t y of the S y n d i c a t e , both t h e
old rate o f 6fe%, a n d f o r much stronger r e a s o n s , the n o w rate o f
!%t a r e o n e r o u s a n d u n j u s t i f i e d .
I n v i e w of t h e f a c t , h o w e v e r ,
that - v.n y o u report - t h e Syndicate h a s r e a l l y taken sincere
ste>e to puree itself o f t h e several abuses n o t e d b y y o u , I w o u l d
he 1 incline 1 to overlook this p o i n t , provided the Syndicate
would take prompt steps to carry out an effective campaign f o r d e posit, o, especially remembering t h a t , a s the J'.w.O. h a s a p p r o v e d a
new loan, the only or. cur. o r o r failing to undertake such a cara?paipa h a s n o w been removed.
r
'.""•.•.!••''. -T o« • p j> " T W
'* , .'fif»i,!OTf:
Ihio e u b j o c t i s t r e a t e d on ..ope "'> of my l e t t e r of i n s t r u c t i o n s and i n your l e t t e r s i r r and Idri.
hroi-a your l e t t e r s ,
I l e a r n wita a s r e a t dral of p l e a o u r e t h a t - t h e b.-.'ppst of the
S y n d i c a t e for 1922 h a s he on p a r e d loxn LJ Lei 700,00-"), which I
feur.d very r e a s o n a b l e .
I au\ not oo p l e a s e d ai LI t h e l o o p hole through wirier i t v-ap, found p o s s i b l e t o p e r p e t u a t e ?-r. R o i t mnr. .as a drain on t h e ?ynd;i cute'< r c s o u r c e o .
In a d d i t i o n there-I
ar.
q
u
i
t
e
concerned
about
the
p
o
s
o
i
b
U
i
t
;
,
of
ti e Syndicate
V
J
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-?-
again running i n t o extravagance as soon a s i t s e c u r e s p o s s e s s i o n
o f t h e new aoney.from the J . B . C .
Under t h e c i r c u m s t a n c e s , I am
rather sorry t h a t y v u found i t Impossible t o ask for a veto r i g h t
on a l l new a d m i n i s t r a t i v e expenditures a s suggested i n a y l e t t e r
of i n s t r u c t i o n s ; and 1 would suggest t h a t you t r y t o secure such
a r i ^ i t to y o u r s e l f by a proper p r o v i s i o n i n the evidence of i n debtedness which you w i l l lake from the Syndicate, so as t o assure
y o u r s e l f of r e t & i n i i ^ a h^id upon t h e p u r s e - s t r i n g s a f t e r t h i s new
p r o s p e r i t y wave i n the form of an a d d i t i o n a l l e a n from the J . h . C .
h i t s the Bessarabian p e o p l e .
ft.
CCKhT Off SHARK B
''he a e t i c a taken wita re&p-oct to t h i s l a very ^ r a t i f y ing as ih aloe L e r i s o l a t i o n prevent!no* cooperative?-, a f f i l i a t e d
wit;, the Syr-., Scale ixoco j o i n i n g other cooperative s,v«--hi c a t e a .
(Thie auXc-ct i s '.".rolled on oape ol of tf..y l e t t e r o> i n s t r u c t i o n s ,
Rec. 4-d-"-'.)
10.
dAhthiv-" . •• : - O . V - ; J ^ , -.../•:..-•.
'-.ho a c t i o s Lakea ..doolie,.in-' ipa* .r,.--,l-<ri";^ of board
ntembere, with, taa a...or tiou of one, aa-.... ir. c e r t a i n c o n t i n g e n c i e s ,
two, if- a wary satiwh'aotory step forvrara.
In W i s roapoct arjain,
however, i t will be neeesoary dor you to c r e r c i e e t : -o utmost
vigilar.ee ah-;a the dys'lo-ate eec-reo ir.o oca loan.
^1.
;
.<--.
v-••?;- .ur-.-vil •.-..- A .vlj. a a
.o p-.pi.uu.. ..-ifr
This subject is treated on pays 51 of ny letter of instructions ana in your letter 162, from which I learn that in Hov.
1922, a twenty-fifth society was admitted into monberoain and that
the hynoioate refused tc limit its membership to the present nuiabjr of cooperatives.
haaaen hy Itself, it i?j, of course, a very
praiseworthy purpose to attoript the revival of all the 37 cooperatives svhich existed before the war and even to add to their
number.
Vhio principle only holds pood, however, omvided that
suoh revived or newly created cooperatives nave inherent in them
a possibility of a oali"--.supporti.na nealthy existence.
The principle ooaoeo f,r> ir/dih .pood, however, ao soon an it io admitted
that ouch cooperatives, >;t,i.mi revived or created, will depend entirely upon .1. .0. uoney for their exi;.••..eacai ^m\ dr. ia'..ov/ of this
fact, any reasonable person who is unblindad by prejudice will
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-8admit that the J.a.C, has a right to demand that the number of
cooperatives admitted in Bessarabia be finite a to sue- &z is consistent wiu< the moans at the disposal 01 the .!."". c. for this pur
pose.
It stands to reason, of course, that, in view of the
limited amount which the J'.h.C, could n.are dor deosarabia, the
number of cooperative? ou^ht not be be increased for the present
over tae 2r> now baltim«dng t. •*, -o dya icate.
I would wherefore
sugpest that wo en ma^aa^. tj.e. loan, you insurt in the note a provision that irrespective of the number of cooperatives whicr:* the
Syndicate may admit to membership, only the 85 cooperatives now
affiliated with it, naming them, siiould receive loane from the
Syndicate out of the funds loaned to it by the ,?.p-.C.
If then
the Syndicate can.neouie moneys from o»,h«r ^ouaoeo "/h.ioh would
enable it jatl^xact-urily to finance .-'uiUiuionni coooe.. nuivos, it
may pioosed uu do oo - ir-d e:c ioe i';. r.-u.-ro liiii<; itself la risking
loans i.o hlits 2d ",o.-i etiee already ad.oi vtech,
ia.
•.•.•.•.p;>i"h
I hav* rood wxxi. a , rev \; do?;.! ,>h spmpatity your very
eloquent pleaders on behalf oi the s'yoaaioate
and aih'il:i*>ted cooperatr^eB i n t h i a rcf/pecr, ara) I <. :. a?'. Iowa, hawa" it: a- m a t deal
of le-".ic or. yojr side '..hen you oay 'i;.;i'(, uo Ccwipuij n A or deposits
could he aicoea.uul uaieeo aceojapauiod oy aa 'UUsooacer eat that the
J.D.d. i.ai> extended to the cooperative rp-jtoa of av.o&rabia an
additional ioao oi oonaiderabi:'. p r o p o r t i o n s .
I ooever, stioh a
loantew aoa been approved r^nd to ere i s therefore no 1 urr/aer reason
why thiu oan.pa.t; n e..oai.l ao t at once he undertaken with tae g r e a t est vippor and pushed to a successful culmination.
day I t h e r e fore, et tde r i s k of repeatinp myself, urye upon yov t h a t immediately apu/i your r e t u r n t o h'essarabia, you eeu on foot such a
campaign.
I a»& sure tiiat i t r i l l bs b r i l l i a n t l y --successful and
that i t wiix r e s u l t not only In a p.reat deal oi benefit to the
cooperatives, but a l s o in a larp.e measure of plorp an:: s a t i s f a c tion t j- y. i u r o •,: 1 f.
"'bur statements ir. l e t t e r 162, w.H'- reference to the
?;eodinf: oat oi o'or.uaot mer.ber;-., the ••.ecirisv of aei "arite data
on the c-dL'lectah-il.ity of "twaae, arid a- the >•. •wVtr -r-a- delinquents
and extent of delinquency in payr-a-nt, raw' or. t> o 'arto.-; of r e j e c t e d a p p l i c a t i o n s , l a v e been rioted, a r t -.-e are I- Pkinp forward
t>j d e f i n i t e ar<:' current i n l o r n a t i o n oa t o-ve ^o.J^ot-,
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-9The form:;: and reports (letter of instructions, pai?o
36, yo'.-ir letter V.2) mentioned in your letter, nave unfortunately
been left behind ir. Paris, so that 1 have not been able, thus
far, to examine them.
1 0 ,
tic i iiiir
. . , i v , . . ! . ..:..•; . L ' . ;
.
. ;.i_,..y
( L e t t e r oh h n r t i not i o n s , payro 3 6 , y o u r l e t t e r 1 6 2 ,
page 2d.}
1 t h a n k y o i f o r d r a w i n g my a t t e n t i o n t o doe f a c t t h a t
u n d e r t h e no t e n waken from t h e S y n d i c a t e , t h e awramtr; doe u s
f o r m a c h i n e s and. t o o l s do n o t become p a y . d i e u n t i l darnsary 1 s t ,
1924 and t h e r e f o r e v.-a n--rve nc r . v p t to demon n pv-aooant of a n y p a r t
t h e r e o f u - d , i l to? t d a t e .
;y. •.-.j-vor, i t i;:. o t i i l . . . o ' l r a h l c t h a t •
you owe i-t ;Cxo.-- t. i yrr'io... .,£.. o w . . i - r ; n : u a l ist-rt..:, i e n t s a;-; t o t h e
t o o l e xad
"td.no- c o l d and Iho orioonto o o l l o o t O ' . ou ...eooant, so
that
c wry hyv-- -varreno i.nh..,raotin,, oi t o e ^;iovoront .ho "who d i s p o s a l rvr o ..?... . r o r i . a . i r o d to...!-;.
14.
C_y^„'J'' SHAR:E^..lk^ ^ n d t U d s ' h
( OOuO i . i., t O" 1 .:••„, pa. w. . • <
J
.i
t h a t t/'O: •. jaor\...i. -.">-. n o s y o.' J v\ ,.• n -.-on .: i i a * . n.. '.-> ,t.a..... r a e o
t h e c o o t ..-1 it?- o...aree Idon. ?."> .n d l t - . i , t:*;; i. at. i t d i d e n a c t
t h a t t r ? d;d l ? i yd a r e s ..-.not v-o Puldy p a i I •.;., d u v i r a -... .; o u r r e n t
y e a r , A n . t . - . r l ;;f •3pr00.dd.a_, a w ; ;wiyi.'ien>.; ..-v^r .-:-. L-or .Loo of f i v e
y e a r s , 00 o r i g i n a l l y i n u e n i e o .
"Xio w l r o o i ^ e l :au.i o o o o o r a t i v e a f f i l i a t e d u-.U,. n:,o d p / h ; i o a t e t o pay v.n d u r i n p t h e c u r r e n t
y e a r , b o o i . l :o t h e f o u r l e i p e r o h a r o , ;.r 00.. r r a l r e a d y p a i d , an
a d d i t i o n a l I d l e i for <naoh one nC t h e i r own n o v w o r o .
1'his i s a
v e r y y n a t i f w i n y s t e p f o r w a r d , o c p o c i - d l y i n vo-v. j . ;.,io i n d e n t i o n of i n c r o a : i n . . " t h e o o o t , f t h e v h a r o o r - a t p-anv.
<h\h
:" h r d - ^
I n o t e t ie a c t i j n t x k e n w i t a r e r a r o n c e t o t . t i s a s r e p o r t e d i n yo i r l e t t e r ld;d and are n o t <piito p l o n o o d odrth t h e a p p a r e n t i n t e n t i o n of t o o C'ynhdaito n o t t o o o t l , 001 t o n o r t "orpe,
ddo - a i d h o u s e .
t t roeias to ,30 t o i t i t w.> w.d ro d u - r e i t h e r
u-j c e l l t Lo ooooe or J.;o p "lo.ee no iaoor.'. r : .00 a a io ..-..atever, b u t
p r e f e r a b l y to s e l l i t .
fov.wvor, t h i s i-i a
t c j - i . - t , ./ou b e i n g
00 t?.e p r o u n l , can .;' J lye b e t t e r tr. 01 I .
ljr*.
r _ _____ .!.•; 1
M.'
. O. •- . -;. .p/ ; ;l\hoii,
"•ho afijon-'Konts to. tine c o n o t i t o t i c n o f t o e S y n d i c a t e
;.;; r e . or t e d i n y o u r l e t t e r 1 5 2 , pap-e ;-.al, a r e s a t i s f a c t o r y .
JOINT
DISTRIBUTION COMMITTEE
PARIS - FRANCE
-10II.
TAkd3 Off OLb H0V15S
Tiiis subject was f u l l y t r e a t e d both i n my f i r s t l e t t e r
of i n s t r u c t i o n s of August, 1921, as well as in ray recent l e t t e r
of i n s t r a c t ion.-J, 4C-P, and i s touoioe . upon i n grour l e t t e r s 162,
177, 179, 185, 186, 193-Ii aru i n youi wires 9 and 10,
Your l a s t
word on t h i s subject can be assumed to be contained in your l e t t e r 193-H, which shows very g r a t i f y i n g progress to have been laade
by you,
From t h i s l a t t e r , i t would appear t h a t t h e r e i s a f a i r p o s s i b i l i t y of our securing exemption on the ' A c ' s n o t e s , t h e
p o s s i b i l i t y of e .emotion on one s y n d i c a t e ' s notes i s very remote,
indeed, for, aa 1 aa inter from your l e t t e r , t h e dinis-rcr has i n fornra: yo1' th-^t '.out e^oniotioiJ could only be secured through a
l e g i s l a t i v e grant tty\d from uy personal knowledge of p o l i t i c s on
both hemispheres, i can assure poo t.-.^.t i'.; would ta.. i- yaar • i n any
cou.try to »__,et ;Oii;: a ie.yisi «tive ;>.c>, tt.rcn.h harlin-aoo';.'
Under
the CJ.I c..u:>o Unices, f».nd 1oartio.ilarlp" in ".lev of th.2 :;t'.j.DO; ent conuainoo in cable 194 fro*- . Ka.. 'corn, ahove referred ,;;, rnd which wil
be foua.d reproduced aoreaCWr, I tu.i of the opinion :
\ l ) A'lii't yon do not ii.';or;.>ornto h e • ••d,-.;, i< d.oty:>n.nia a t
the present t i n e . 1 tit ink this; io a vary ooriono (paction which
siiould Vie considered on i t s .am nor i t s ai.'l at .urlouro borhnre any
step i-5 -axe.o l a ti.i.3 d i r e c t i o n ;
{2) ''hat you act now <m your secant; on yyoolk.-o. ^v,. tender
pay-woo 1 0.1 cho revenue tax to the '"ovoriweat od sh a r e s e r v a t i o n
t h a t t.he said t a x should be refunded, to poo in ooae yaar pending
i n t e r v e n t i o n r e s u l t s in the securing of f i n a l e osaolion.
i l l , ;-' I h. g ,-•'> h J U L J L J t A J i
is
.J
.»* .Hi
14
a
hi
*.*
^i
'^
f-jL... ...J.i^,--'dh-Jh^;. ..h^k.dhV'.:!'-
(Lecter of instructions, -16-P, oayo 11:.) I note what
yoo have to say on t.,la subject in poor lattor 10-., oaieh is quite
satisfactory.
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-112.
vzzmrz
BARRACKS
I n o t e v;hat you say i n your l e t t e r 184 w i t h r e f e r e n c e
t o t h i s s u b j e c t and, a s t h i s i s a r e l i e f and n o t a r e c o n s t r u c t i o n
m a t t e r , I s h a l l forward t h i s l e t t e r t o Mr, Rosenberg for h i s k i n d
attentinn,
3* TOOTH* .FOR J\dfr.yYdvyT!3 .ffgfflJARY.
13^2
l have looked over t h e r e p o r t of t h e a c t i v i t i e s of t h e
%%G d u r i n g t h e months of J a n u a r y and F e b r u a r y , a s a t t a c h e d t o your
l e t t e r 174-K and found t h e infor>viaticm c o n t a i n e d thoro.in v e r y i n ters-tiny,
t d - ; r:v--?rt, aa well ar a l l o^ner ?* n aoi .1 and s t a t i s t i c a l -'at-. --IIP, of c o u r s e , ho t,ii.ro'""'i over ;-o '*r. v-'teLe?. f o r
more dar:a--.ph o j i , i p - d s ,
ii—IIiri'uLah, .1^111 JLL aILdl^lL!i\lLi;I!^Q,J.J^?il^
T (-.ato t h e air'aoir^s of your w i r e 1 5 , ni a r o i n you c o a munieato -the r^oo'au;.loa.-; adopted k-y t h e V o r - t a n d of
fOf» ".'A.G w i t h
r e f e r e n c er to the p r o s p e c t i v e no-.- lo.ao from to a ,T.'rV .
?!>" d i v i s i o n o th."; !iion;y in toe prnnoi i;. < or of -f80,000 f o r r a r i t y and
$£0,000 f o r per.-1 aoal'.y c o r r e s p o n d t a -air i.nBi.ruotinno ;nv*. i s
satisfactory,
Mio a c t i o n taken wiohi 'i'«fer«;nr.o ,o i-.h.e i n t e r e s t
r a t e s t o bo charpo >,o oorro,-,ero io a -^t.1 rfac".ory, p a r t i c u l a r l y
as I t i o o r e d d e a i c t up;m a ?.oiaui lane TUB deci-ri-.n t.o pop* no i n t e r o.; c to" V o d.".C-. u n t i l l'-»ar>,
t a»-i s o r r y to be compelled t o
Infer-, you t h a t .1 s d a l i n o t approve of dho new l o a n t o t h e VAG
except on c o n d i t i o n t h a t 11 b e a r intorea__' froia t h e d a t e on ^ihichx
the Iaoney l a t u r n e d o v e r , a t t h e minimurt r a t e of h,,-h p a r a n n u a .
This w i l l n e c e s s i t a t e a r e v i s i o n of t h e i n t e r e s t r a t e s t o b o r r o w e r s , ao adopted by t h e V o r s t a n d , t o - w l t : four oer cent p l u s
_a ona-tlnto one" and a h a l f p e r c e n t s e r v i c e onarge o n j v g a l t y l o a n s
"and e i p h t p e r cent' on p e r s o n a l t y x o a h s , and 1 aa 3 t i i l of t h e
o p i n i o n t h a t t h i s r o v i o i o n oucm; T,O oe made in a c c o r d a n c e with
our o r i g i n a l recorrrrien N a t i o n s , namely, five" per c a n t , p l u s a two
per cent s e r v i c e cnarye p l u s a e c a i i n y t e c h n i c a l oh-arp;e on r e a l t y
ican^j and e i p h t p e r c e n t , p l u s o f i s t two oer cent s e r v i c e c h a r g e
oi\ o ' - r p o m l t y l o s n s .
. ^ .
•-.
• ••
. . . . * . '
»- -i
- - j ' __ *
'-J - *
The action taker by the Vorstand in disaissing einihi
oooerfluous employees and assigning two others to the work of
collecting eutetandinp J.h.C. lo-ani front relief funds, is higtily gratifying indeed and yon deserve congratulations for having
brought it about.
JOINT
DISTRIBUTION
COMMITTEE.
PARIS - FRANCE
-12IV.
MW AflPROFBIATIOHS
And now I have great pleasure in coiataunieating to you
the attached cable just received from Hew York. You will see from
this cable that Haw York has approved the following three appropriations:
(Bee cable 194, Apr, 3d attache Verewithj
(1) $100, KK) to the Cooperative Syndicate of
Bessarabia.
(2) 1100,000 to the Vka of ftsernowitz.
(3) £10,.)00 to the hesaarablan Syndicate of Cooperatives, exclusively for agricultural loans to
.Jewish agricultural settlers in Bessarabia*
The conditions attached by hew York to these appropriations - which conditions must be fulfilled before the money in
turned over - are the following:
(1) That all chanres and reforms suggested in toy letter of instructions1 (46-P) be accepted by the two organisations and actually carried out by them.
(3) That the queotion of the payment of revenue taxes
on the old notes be finally disposed of.
(3) That the interest rate to be charred to borrowers
in Bessarabia be fixed at 12% per annum, plus a f l a f H W oar oant service charge on each loan/ this to be tried out
for a few months with the right reserved to the Syndicate
to renew application for a larger increase after a reasonable period, if this rate is found insufficient.
You will note frosi the cable that the Reconstruction
Somaiittee has also reached a decision in the sense of my recommendation with reference to the disposition to be made of amounts
collected in Bucovina on account of loans isade by the old J.B.C.
there out of relief funds.
In fact, the Goramittee decided that
all such moneys should be placed by the W J in a special reserve
fund kept exclusively Tor the purpose of covering any eventual
losses or deficits tiiat the organization ®&y be confronted with in
the future.
JOINT
DISTRIBUTION
COMMITTEE
PARIS - FRANCE
-13"t'heee new appropriations, together with the action taken
by the deconstruct ion Committee with reference to/amounts collected on old J.^.C. loans, should surely result in lending to the
two institutions in Rouraanla, the greatest measure of solidity and
stability.
This action by the Committee also gives new scope
to your own highly interest in,? task, in the carrying out of which,
I again wish you the higghest measure of success.
Yours very sincerely,
AAh FAJH
1 Incl.
(Gable 194 fr KY)
Alex. A. Landasco,
European Director,
Reconstruction rsepH, -J. •'-. c.