ABSTRACT
One of the main components of the process of economic mobilization and social participation in the war effort was the financing of the war. As Yitzhak Greenberg showed in his study, direct domestic expenditure to finance the war totaled 66.8 million Eretz-Israel pounds from October 1947 through the end of March 1949. The enormous change that occurred during the second phase of the war is reflected in the fact that direct expenses to finance the war through the establishment of the state were around 6.5 million Eretz-Israel pounds, while from mid-May 1948 through the end of year, expenses totaled 59.8 million Eretz-Israel pounds. 1
