'Mesopotamia' [‎67v] (134/152)

124
ECONOMIC CONDITIONS
[No. 92
J he wide use of the Persian kran, coupled with the
wide fluctuations of its exchange value, have been a
source of embarrassment to trade in the past, and it is
important that means should be found of steadying
the exchange, in view of the importance to Mesopo
tamia of the Persian markets.
It has been suggested 1 that if, as appears probable,
the Indian rupee is to continue to be current in Meso
potamia after the war, steps should be taken to give
Mesopotamia a subsidiary coinage in the form of cents
and her own note issue as paper currency, on the same
lines as have been followed in Ceylon and British East
Africa.
(3) Banking
Before the outbreak of war, the only banks of im
portance established in Mesopotamia were the Imperial
Ottoman Bank, with branches at Baghdad, Mosul, and
Basra, and the Eastern Bank, which had recently
opened a branch at Baghdad. Banks were indeed
scarcely used for the purpose of trade, and their place
was partially filled by saraps. These, in the ordinary
acceptation of the term, were mere money-changers, but
they acted as private bankers, taking charge of cash
or securities, against which the customer could draw-
by chit. Trade credit was carried on also by means of
commission houses, which collected orders from all
quarters, taking payment from the traders by means
of a deposit with the order and by a Kompiala bond
tor the balance, the bonds being redeemed by instal
ments. The Kompiala bond, which is a promissory
note payable at date, could be discounted at rates of
from 6 to 12 per cent., and was a good security in cer
tain hands. The Imperial Ottoman Bank, for example,
could put in motion the legal machinery to protest and
recover; in some other hands the bond might be a source
of expense.
At the present time there are three large banks re-
1 Report to the ludiau Government on the prospects of British
trade in Mesopotamia, hy R. E. Holland and J. H. Wilson, p. 40.