In the 1930s, dozens of banks were established in the Land of Israel, mainly small ones. Most of them closed by the end of the decade. One of them was King Solomon Bank Ltd., which was established in February 1932 by Dov Rosenstein, a certified accountant (1889-1948). When founding the bank, Rosenstein declared that its aim was to serve Freemasons, and that is how it came to be called King Solomon Bank, since – according the organization’s tradition – the biblical king brought the ancient art of building to its peak.
The bank had branches in Jaffa Street in Jerusalem, in Herzl Street in Tel Aviv, and in Herzl Street in Haifa. Rosenstein had full control of the bank, and the stocks issued to the public carried no voting rights. The bank relied on funds raised from the Jewish public through bonds, and issued more than 40,000 bonds for PP 200,000.
In 1938, following recommendations issued by the Land of Israel’s Banking Committee, the equity capital requirements for banks were increased, and the King Solomon Bank could not meet them. Thus, it failed the requirements for becoming a company, which was a prerequisite to continue operating. The large banks refused to come to King Solomon Bank’s aid, although they did assist other banks, and in January 1940, Rosenstein had no choice but to liquidate it. At liquidation, the bank owed PP 62,000 to its bondholders and PP 40,000 to its deposit holders, most of whom were Rosenstein’s relatives.
The certificate was designed by Eliyahu Korngold (Koren, 1907-2001), who immigrated from Germany in 1933 and was head of the Jewish National Fund’s graphic department until 1957. Koren was known for the version of the bible named after him, which was published in 1963 and was famous for its accuracy and beauty. He founded the Koren Publishing House, which publishes sacred books to this day.
(From Barlev collection of Securities Certificates)
