'Report on the British Indian Commercial Mission to South-Eastern Persia during 1904-1905. By A H Gleadowe-Newcomen.' [‎31v] (67/176)

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EEPORT ON THE BRITISH INDIAN COMMERCIAL
entirely in the hands of Hindus and Parsees, with the exception of the trade in
tea and sugar, where they hare a few Muhammadan competitors. The export
trade is mainly conducted by Shilcarpuris and a few of the Parsees, whilst the
carpet trade is almost entirely in the hands of Tabriz! Turks.
The neighbourhood of Yezd, where the merchants are much more capable
and energetic than those of Kerman, also militates against the commercial
advance of the Capital of this ancient Bactrinn province. Yet, if the Kermanis
only cared to, they could build up a very profitable export trade in wool, gums
and possibly minerals. Kerman produces about the best wool in Persia, the
growth of a special breed of short-legged sheep, which Path Ali Shah, successor
of Agha Mohammed, tried, without success,, to introduce into other parts of his
Empire. There used, at one time, to be a large export trade in wool, but this
has now disappeared. The hills near Kerman abound in gums and minerals,
and much wealth could be won therefrom by an energetic people and an
enlightened Government.
The trade horizon, in the beginning of 1905, presented hopeful signs, hut
the year previous was a bad one for Kerman. During the whole of that year
the carpet trade, owing to over-production, coupled with dishonest work, which
caused wholesale rejections, was inactive.
All carpets and rugs made for the open market are paid for while still on
the loom, and when delivered to buyers are sent by caravan to Tabriz, where
lots are sent on to Consatinople for distribution. In both Tabriz and Constan-
tinonle large consignments remained unsold thoughout the year. Carpet
making being Kerman’s staple, and almost sole industry, all other trade was
sympathetically dull.
This was serious, coming as it did on the top of two had years, and the
situation were still further complicated by the fall in exchange of the value
of the Kran, as compared with the rupee. The rupee value was already unusu
ally high in March 1904, being Krans 337| per B100, but by the end of
December the rate had gone up to Krans 418 J per K10Q. In the beginning of
1905, exchange fluctuated between 418 and 420 Krans. This rise in the value
of the rupee is attributed to the commercial crisis in Bussia, caused by the w ar in
Manchuria. However this may be, the rise contributed to increase the slack
ness of trade. Exports to India from South-Easiern Persia are too small to set
off against imports from India, and importers, having to do nearly all their pay
ments in cash, felt the fall in the value of the Kran to the full.
^How severe the effect of this combined stagnation of trade and depre
ciation in exchange was, is shown by the fact that, whilst the price of carpets
dropped from fO to 60 per cent, the price of imported commodities rose from
30 to 40 percent. The cholera in October hit Kerman trade still another blow,
and many bankruptcies occurred amongst traders and carpet-makers,
Indian exporters were not, however, benefited by the rise in the value of
the^ rupee. The paucity of imports from Persia left them unable to effect any
saving in banking commission on the return of funds. Neither did they
derive any benefit from the cheapened market such as they would have had, had
they been able to make substantial purchases of Persian wool, cotton and gums,
etc. The only persons who did benefit were the Tabriz Turks, who, seeing
an approaching improvement in the carpet market, and taking advantage of
the extremity to which the Kermanis had been reduced, bought heavily, in
October and November, at prices which were below the cost of production.
The Imperial Bank of Persia opened a branch, which is subordinate to that
of Yezd, in Kerman in 1904. This branch bank is already beginning to
attract business^ and is rapidly gaining the confidence of the natives. It has
also had a steadying effect on local exchange rates, which had been highly
unsatisfactory, as well as having a salutary effect on the transactions of native
money-lenders. Theve is a good demand in Kerman for tea, sugar, bright
prmts, grey and white shirtings, twist and yarns, Indian spices, copper sheets,
steel tn Jets and bar-iron, candles and kerosine oil, also for cheap, flash ware,
chiefly made in Germany and Austria, as well as for trays, glass-ware