500 Prutah, Bank Of Israel

BANK LEUMI LE-ISRAEL SERIES

On May 1, 1951, all the assets and liabilities of the Anglo-Palestine Bank were transferred to a new company called "Bank Leumi Le-Israel B.M." and it became necessary to issue a new series of banknotes which would bear the new name of the bank. Rationing was in force at the time and the Ministry of Finance headed by Eliezer Kaplan had decided to take advantage of the need for new banknotes in order to collect funds from the public in the form of a compulsory loan. At the beginning of 1952, the task was imposed on the Currency Department of Bank Leumi, and the mission was carried out in secret. The new banknotes strongly resembled the Anglo-Palestine banknotes, but this time, they bore the name "Bank Leumi" and new currency "Israel Pound". While the previous notes had been printed in the United States, the Bank Leumi notes were printed in London by Thomas de la Rue and Co. The project had become extremely urgent and the notes were transported to Israel on an El Al flight. For the flight, seats on the plane were removed and bookings of passengers were postponed in order to prevent panic on the part of the public. The banknotes were brought in utter secrecy, with the media having been instructed not to publicize the news. However, following the introduction of a new economic plan, exchange of the banknotes and collection of the loans was postponed to a later date. In the morning of June 9, the Minister of Finance broadcast an announcement about the new loan which had been approved within the framework of the regulations adopted for the time of emergency. Prior to his announcement, only executives of the ministry knew of this. Exchange of the currency began at noon. In exchange for each Anglo-Palestine Palestine Pound, a new Bank Leumi Israel Pound was given. The new Israel Pound was worth only 900 Prutas. 10% of each amount exchanged by the bank was passed on to the Ministry of Finance.

Size: 148 X 72 mm.
Dominant colour: Olive-green on light-blue.
Front: Guilloches; the denomination "500 Prutah" and "Bank Leumi le-Israel B.M." in Hebrew.
Back: Guilloches; the denomination "Five Hundred Prutah" and "Bank Leumi le-Israel B.M." in Arabic and English.
Colour of numbering: Red.
Signatures: S. Hoofien, A. Barth.
Design: American Banknote Co., New York.
Date of issue: June 9, 1952.
Ceased to be legal tender: February 7, 1961.