File 3516/1914 Pt 8 'German War: Persia' [‎158r] (320/434)

Enclosure 1 in No. 1.
Sir W. Towniey to Prince Ain-ed-Bowleh.
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if after two months from the date of the law of to-day’s date dealing with the matter
of the suspension of the payment in silver of its notes by the Imperial Bank of Persia
for that period, the Imperial Bank, owing to some unforseen cause, should not be able
to meet its notes and to pay them in cash, the British Government will guarantee to
pay either in gold or m silver such amount of notes then in circulation after deducting
recent bank note legislation, has been the cause of the spread of false rumours
amongst the populace.
The debts of the Imperial Persian Government to the Bank, referred to in that
letter, are the advances in current account made by the Bank to the Persian
Government, and not the British loan of 1,250,000Z.
Law presented to the Medjliss by, the Prime Minister, Prince Ain-ed-Dowleh, and passed
by that Body on April 27, 1915.
Article 1. In order to obviate the difficulties which hinder the smooth running
of financial business in the country, caused by the closing of the means of commu
nication in Europe and the reduced imports of silver, and the exchange of the
Imperial Bank of Persia’s notes, and in order to protect the proper ^ balance and
working of the silver currency in business, the Imperial Bank of Persia is authorised,
from the 8th of Saur, 1333 a.h. (28th April, 1915), for sixty consecutive days, to pay
ngainst its bank notes onlv 10,000 tomans 10,000 Persian dinars, or a gold coin of that value. per day in silver Persian currency.
Art. 2. Over and above the sum of 10,000 tomans 10,000 Persian dinars, or a gold coin of that value. a day the Bank is aut orise ,
when paying out notes to the public, to pay out 1 toman 10,000 Persian dinars, or a gold coin of that value. of such sums m silver
Art. 3. In all State and Government transactions bank notes will be the currency
<ts heretofore. • ^ u- i 'll
Art 4. After the lapse of the sixty days mentioned above in article 1 this law will
become null and void.
the amount of the debt of the Persian Government to the Imperial Bank.
Enclosure 2 in No. 1.
Note sent to the Persian Government with reference to the guaranteeing of the Imperial
Bank of Persia's Notes by His Majesty's Government.
I REGBET to observe that the inadvertent publication of letter dated
, between this legation and the Persian Government on the subject of the
The purpose of the guarantee given by me in the letter given above referred
to was to afford support to the Persian Government in the assurances which it was
the desire of the Medjliss to give the public that the notes of the Bank are perfectly
secure, and will be paid by the Bank to the public in accordance with the law.
Enclosure 3 in No. 1.
currency.
Art. 5. This law relates only to the capital.
Art. 6. The Ministry of the Interior is entri
entrusted with the execution of this law.
SULTAN ABDUL MAJID.