'Memorandum by Sir M Durand on the situation in Persia' [‎44r] (21/42)

Yet again the breaks the system offers in the chain of responsibility prevent proper
c^trol by the Central Government. Not only is the Treasury the loser, but the chief and
sub-contractors likewise, for bribery enters largely into Customs transactions; and in
practice, I am told, both foreign and native merchants take advantage of the venality of
the Customs agents, the former rarely paying more than 4 per cent, import duty, and perhaps
even less, the loss in this case falling directly on the local contractor.
No. 5.— The Treasury.
The staff of the Treasury consists of an official with the rank of Minister. The Staff of Treasury.
Amin-ul-Mulk, own brother of the Sadr Azm, now holds this post. He is assisted by
various writers and cashiers.
The duties of the Treasury comprise:—
1. The receiving of all surplus provincial revenue noted in the Memorandums issued
by the Daftr. In exchange it gives receipts which serve as vouchers in the final accounts
of the Governors.
2. Receiving the fixed revenues derived from Customs and Mint, sale of Governorships,
Concessions, and other miscellaneous items.
3. Disbursing moneys according to the special instructions of the Daftr—instructions
which generally take the form of Barats.
4. Making payments agreeably to the Memorandum prepared by the Daftr for the use
of the Treasury.
The Treasury Memorandum differs but little from that prepared for the provinces. It
shows all the receipts, whether from revenue, Customs, or Mint, for which the Treasury
will be held responsible, and specifies as disbursements all the usual fixed expenditure.
The Barat system {vide Part I, Paper No. 2) is much employed in the Treasury, for no
extraordinary disbursements can be made except on the Barats vouched for by the Minister
of the Daftr and the Sadr Azm.
The business of the Treasury is conducted very irregularly, and its funds are utilized Conduct of business,
by the Minister and others concerned much in the same way as are those of the Military
Accounts Branch by the Naib-es-Sultaneh, Minister of War. In many respects the
Treasury is treated as a private banking concern, relations being entered into with private
bankers (“ sarafs ”), and moneys loaned out at high rates of interest.
To carry out this programme the Treasury seldom is able to disbui’se moneys on due
date, and a very large number of Barats are kept out for eight or nine months even without
receiving attention.
The actual disbursing business is managed through these “ sarafs,” on whom the Minister
issues cheques or pays orders in replacement of the original Government Barats. Great
delays ensue, and the holders of the cheques, rather than run the risk of indefinite delay,
often prefer to compound with the “ sarafs,” receiving from 1 to 3 krans in the toman 10,000 Persian dinars, or a gold coin of that value.
(10 krans). Large profits thus accrue to the great advantage of the Minister and the
bankers.
At the end of the year the Treasury submits its accounts to the Daftr, where they Audit of accounts of
are written up by the Mustauffis set aside for the purpose. After verification they Treasury,
receive the signature of the Minister of the Daftr and the Sadr Azm.
A cursory glance at the foregoing will show that this branch of the public finances is General remarks on
managed on the lines of a private monopoly. The fact that the Minister is own brother to the administration,
the Sadr Azm gives him enormous power, and nullifies the audit which is supposed to be
exercised by the Daftr. It also nullifies the value of the audit by the Minister of the Daftr
and the Sadr Azm.
The Treasury, as regards management, is the counterpart of the Military Accounts
Branch. The one is conducted in the interest of the Prime Minister, the other in that of
the Naib-es-Sultaneh, Minister of War, neither being under the effective control of the
Daftr owing to the high positions occupied by the respective patrons of the subordinate
Departments.
I make special mention of this contrast, because I think it accounts in great part for
the want of influence of the Sadr Azm in all matters affecting the army administration, the
Minister of War always being able to reply to any criticism on the part of the Prime
Minister by pointing his finger at the Treasury.
I ought not to forget to mention that the Amin-ul-Mulk finances all the private
business of the Customs for his brother, the Sadr Azm.
No. 6 .—Ministry of Pensions and Charitable Bequests.
This so-called Ministry is presided over by a Minister known as the “Vazir-i- Organization and
Vazaief/’ through whose agency An office of the East India Company and, later, of the British Raj, headed by an agent. an annual expenditure of 500,000 tomans 10,000 Persian dinars, or a gold coin of that value. is said to be scope,
effected.
On the pensioned lists are found students of religious law, members of the priesthood,
“Syeds,” and various Government servants,
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