This came in response to a report out of the Netherlands that the Nazis were extorting huge sums for exit permits.
There is, unfortunately, a large body of literature on ransoming captives under Jewish law. A summary from
The Rambam (Matmos Aniim 8:10, based on the Gemara in Bava Basra 8b) states in the context of charity donations: “There is no greater mitzvah (i.e. use of charity funds) than redeeming captives.” Based on its special importance, redemption of captives is the first priority for allocating charity funds. Echoing the Rambam, the Shulchan Aruch (Yoreh De’ah 252:1) likewise states: “No mitzvah is as great as redeeming captives.”
The Gemara (Bava Basra 8b) highlights the plight of the captive in the hands of his captors. The latter can torture him, pass him through great suffering, and even kill him. He is entirely at their mercy. The Shulchan Aruch (Yoreh De’ah 252:3) thus writes that one who can redeem a captive yet fails to do so is considered to be murdering at each moment.
Nevertheless, the Mishnah (Gittin 45a) teaches that captives should not be redeemed for any price: “Captives are not redeemed for more than their value.”
The reason for this is discussed by the Gemara, which mentions two possible reasons, without deciding which of them is the true reason. One reason is that it is too weighty a burden on the community. According to this reason, Rashi writes that a private individual is permitted to redeem his own family or loved ones, even for great sums of money.
Another suggested reason is that payment of large ransoms encourages captors to continue in their evil ways, taking further captives to make money. Based on this rationale, a private individual may not pay exorbitant sums for the release of his family, since this encourages kidnappings and places the community at risk.
It seems to me that both those reasons for not paying ransom would not apply in this case. The first reason, as stated, would not apply to the family of the relative being held hostage. The second reason, that it encourages the captors to take more prisoners, doesn't seem to apply because all the Jews in Nazi-occupied Europe were already effectively captive and already in great danger.
Indeed, there have been halachic rulings that if the captive's life is in danger without being ransomed, there is no price too high to pay.
The State Department's reason - that paying ransom will add money to the enemies' coffers - is not at all a consideration in Jewish law.
Yet as far as I can tell, this was not even a subject of debate in 1942. The fate of the Jews was well known at this point in time, and there was plenty of pretend outrage in the West, but it didn't extend to actually trying to save their lives.
Jews who wanted to save their friends and family were to be considered criminals.
For context, here is the entire Los Angeles Times page 4 where these two articles were. The main two articles on the page were about the Nazis wiping out the Jews of Europe by the millions:
At the very same time the readers were being given the details of the horrors of the Holocaust, they were also informed that saving some of those Jewish lives is a crime.
Here is an editorial from a British newspaper, the Dumfries and Galloway Standard and Advertiser (December 12, 1942), that goes on at length and detail about how terrible the Nazi persecution of Jews is and how there is no longer doubt about the Final Solution:
Yet when it comes to whether something can be done to save these unfortunate Jews, suddenly the tone changes:
"The humanitarian feelings of humanity must not be traded on for the purpose of financing the Nazis."
Sure, Jewish lives matter - but not to the point of actually paying money to save them. Better to write op-eds about how terrible it is that we have no choice but to let them all die, as long as we know the Nazis will eventually be "brought to justice."
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