The Bne-Binyamin movement was founded in 1921 by Alexander Aaronson, with the aim of assisting residents of agricultural colonies; its leaders included Itamar Ben-Avi (well known journalist and the son of Eliezer Ben-Yehuda) and Oved Ben-Ami (who later was one of Netanya’s co-founders). The bank was founded in Jaffa in 1924 as a cooperative society, with the aim of helping farmers to establish themselves. At the time, farmers received harsh credit terms – for short periods of three months, at interest rates averaging over 9%. According to Ben-Avi’s Doar Hayom newspaper, “even our national bank [Anglo-Palestine Bank] views farmers as step sons, who sometimes have crumbs thrown at them.”
The bank’s slogan was: “The greatest exemptions and largest collaterals.” The bank granted loans to farmers, at a 7% interest rate (“and zero commission!”) for periods of six, eight and twelve months. In October 1927, Ben- Avi and Ben-Ami travelled to Egypt, Greece, Switzerland, France, Belgium, the Netherlands, United Kingdom and the United States, in order sell the bank’s stocks.
In 1930 the British Mandate Companies Registrar started intervening in the bank’s affairs. Its general manager, Issachar Dov Drori (Freier), resigned in response, and Moshe Levontin took over. Close to the onset of World War II, the British Mandate Banks Examiner announced that local banks and banking cooperative societies were to cease operating. Three weeks into the war, all but five banks – including the Bne-Binyamin Bank – resumed operations. A month later, the Banks Examiner issued an order to liquidate the bank.
With the bank’s clients falling behind on their payments and its generous loans to the agricultural Ha’note’a society – which was also founded by the Bne-Binyamin movement and experienced difficulties following the citrus industry’s crisis – the bank could no longer continue functioning. Its creditors asked the Jewish Agency’s management for a PP 20,000 loan, so that it could repay its debts (which amounted to PP 62,000), but were refused. The certificate is signed by Drori and Gad Machnes (1895-1954) – the bank’s chairman, one of the leaders of the Bne-Binyamin movement and one of the managers of Ha’note’a.
(From Barlev collection of Securities Certificates)