File 1283/1913 Pt 5 'MESOPOTAMIA TRADE Issue of new Trade Report' [‎105r] (205/270)

depreciated in value in 1915, it paid to import krans into 33asrali wlieie
they were accepted at four to the rupee although the rate was 425, 435 and
even on one occasion 475 krans to 100 rupees Indian silver coin also widely used in the Persian Gulf. . Some profit was made by
exporting to Mohammerah rupees Indian silver coin also widely used in the Persian Gulf. purchased with the krans. Measures were
taken, however, to prevent the importation of krans and to provide a sufficiency
of the lesser Indian coins. The import of krans ceased early in 1916, when
owing to a variety of reasons the kran commenced to rise rapidly in value.
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66. The remarkable appreciation in the Persian kran which has taken
place during the past year heavily increased Government's liabilities in the
matter of kran payments on account of the. Expeditionary Force and other
expenditure. The reasons which contributed to the rise have been hotly
debated. Before the war a very large quantity of Persian silver was dealt with
in Baghdad, owing to the fact that Persian pilgrims to the Mesopotamian Holy
Places preferred to carry coin, and merchants also made it a custom to send
down specie when rates were unfavourable for drafts. _ Baghdad was also a
financial centre for the collection of krans owing to its situation near the
frontier and the comparative safety of the trade route into Persia. It is to be
hoped that after the war some means will be found for steadying the Persian
kran exchange, but it is difficult to see how it can he done, unless the Persian
Government decide to establish a reserve with the profits of coinage in some
such central market as London or Bombay.
Owing to Mesopotamia’s proximity to India and the intimate business
connections between the two countries, there can be little doubt that the
Indian rupee should continue to be current in the occupied territories, it not
permanently, at all events for a long while to come, if the Government of
India are willing to permit this arrangement.
PEBSIA.
67. We how turn to a consideration of the trade wLich, entering Persia Bntish
at the Gulf ports, makes its way inland to the important markets on the
central Persian plateau. The official trade statistics for the year ending March
1904 showed that the total trade of Persia was about ten and a hair millions,
Bussia’s share being five and a half millions and the British and Indian share
only two and a half millions. During the succeeding decade the value ol the
trade continued to increase rapidly and the customs figures for 191 3-ld show a
total of over 20 million sterling of which Eussia’s share w r as nearly 12 millions
and the British and Indian share about 4| millions. The German share of the
trade was £440,000 in the year 1912-13 and about £600,000 in the
following year:—
The following are the main routes by which British trade entered Persia. Main
(1) From Trebizond into the north-west corner of Persia near Bayazid.
(2) Via Baghdad and Khanikin to Kermanshah and Hamadan.
(3) By Mohammerah to Ahwaz for Dizful and Khorramabad on the one
hand and Ispahan on the other.
(4) Through Bushire to Shiraz and Ispahan and Yezd.
(5) Through Bandar Abbas to Kerman and other smaller centres,
(6) Through Lingah for Lar.
(7) From Baluchistan by the Nushki route.