The second important task of the First Congress was the creation of an organization. The Congress was declared to be "the chief organ of the Zionist movement." The basis of electoral right was to be the payment of a shekel, which at that time was equivalent to twenty-five cents. There was to be an Executive Committee with its permanent seat in Vienna. Everything which was to unfold later in Zionism, both in the way of affirmative forces and inner contradictions, was already visible or latent in the first Congress. There was discussion of a bank, of a land redemption fund to be called The National Fund, the creation of a Hebrew University, and the clashes between practical and political Zionism.
On his return to Vienna, Herzl made the following entry in his diary: "If I were to sum up the Basle Congress in a single phrase I would say: In Basle I created the Jewish State. Were I to say this aloud I would be greeted by universal laughter. But perhaps five years hence, in any case, certainly fifty years hence, everyone will perceive it. The state exists as essence in the will-to-the-state of a people, yes, even in that will in a single powerful person.... The territory is only the concrete basis, and the state itself, with a territory beneath it, is still in the nature of an abstract thing ... In Basle I created the abstraction which, as such, is invisible to the great majority."
All that Herzl did in the political field—his conversations in Constantinople, his interview with the Grand Duke of Baden in advance of the holding of the First Congress, was undertaken as author of a political pamphlet. He was now aware of the fact that he was called upon to act as President of the World Zionist Organization. It was difficult to draw a line between the movement and its leader. Herzl insisted that his leadership in the movement was impersonal and that now its direction was vested in its instruments—the Congress and the Actions Committee. But he had all the authority of an accepted leader.
The evolution of Herzl's conception of the Jewish problem since he saw the degradation of Dreyfus can be measured by a study of the articles he wrote after the First Congress. He himself was quite aware of the transformation. He had seen the Jewish people face to face. "Brothers have found each other again," he said. He wrote with great appreciation of the quality of the Russian delegates. He said, "They possess that inner unity which has disappeared from among the westerners. They are steeped in Jewish national sentiment without betraying any national narrowness and intolerance. They are not tortured by the idea of assimilation. They do not assimilate into other nations, but exert themselves to learn the best in other peoples. In this way they manage to remain erect and genuine. Looking on them, we understood where our forefathers got the strength to endure through the bitterest times."
Immediately after the First Congress, Herzl grappled with his second task, the creation of the Jewish Colonial Bank. He wrote of the bank in Die Welt in November, 1898, "The task of the Colonial Bank is to eliminate philanthropy. The settler on the land who increases its value by his labor merits more than a gift. He is entitled to credit. The prospective bank could therefore begin by extending the needed credits to the colonists; later it would expand into the instrument for the bringing in of Jews and would supply credits for transportation, agriculture, commerce and construction."
The seat of the bank was to be London. There were to be two billion shares at £1 each. The bank was to be directed by men acquainted with banking affairs, but the movement would be placed in a position to control its policy. The hopes of Herzl grew from week to week. As he approached the practical situation he became less and less confident of the cooperation of men of wealth. Differences arose in the preliminary discussions as to the scope of the bank. In the first draft of the Articles of Incorporation the Orient alone was named as the area of work for the bank. Menachem Ussishkin insisted that the words "Syria and Palestine" should be substituted. After a great deal of discussion, the proposals for the formation of the bank were brought to the second Zionist Congress and the Articles of Incorporation, as amended, were adopted by acclamation.
Herzl clung to the idea which had come to him when he was thinking of the Jewish State as a pamphlet, that it might be better for him to write a novel. The impulse to write such a novel became irresistible after his visit to Palestine. It was to be called "Altneuland." He began to write it in 1899. It was completed in April 1902, and published six months later. It is remarkable that he could write such a novel while engaged in varied political activities in Constantinople, in London and in Berlin; and while he had to deal with the many troublesome internal Zionist problems.
"Altneuland" was a novel with a purpose. It described the Palestine of the near future as it would develop through the Zionist Movement. It had the weaknesses of every propaganda novel. The entire work has something of the state about it and proceeds in the form of scenes rather than by way of narrative. Each type has a specific outlook. Most of the characters are portraits of living personalities. It was his purpose to memorialize his friends and his opponents.
"Altneuland" tells of a Jew who visits Palestine in 1898 and then comes again in 1923 when he finds the Promised Land developed under Jewish influence. Its territory lies East and West of the Jordan. The dead land of 1898 is now thoroughly alive. Its real creators were the irrigation engineers. Technology had given a new form to labor, a new social and economic system had been created which is described as "mutualistic," a huge cooperative, a mediate form between individualism and collectivism. Haifa had become a world city. Around the Holy City of Jerusalem, modern suburbs had arisen, shaded boulevards and parks, institutes of learning, places of amusement, markets—"a world city in the spirit of the twentieth century." In this new land, the Arabs live side by side in friendship with the Jews.
"Altneuland" did not produce the effect Herzl had expected. Within the Zionist Movement it did more harm than good. Many of Herzl's friends were disappointed that the novel should have so little of the Jewish spirit. It ignored the Hebraic renaissance. The novel evoked the sharpest criticism from Achad Haam.