Coll 28/61 ‘Persia. Trade Reports. Bundar Abbas & Lingah, 1925/6–’ [‎21r] (41/245)

(j) Commercial morality. —Good.
(k) Working of law courts in commercial cases .—
The town of Bandar Abbas with its vast district
was without a judicial court, after the closing down
of the Sulhieh' Court in September 1930, until the
26th September 1932, when it was superseded by
a Bedayat Court, consisting of a Raise, a Modai-ul-
OjgmQm and a. Mosiantiq. A reception was held by
th. liaise to inaugurate the opening of the first
proper Adlieh Court at Bandar Abbas.
During the term, the Court was chiefly busy in
studying and arranging the various old pending
cases, and except a few cases of smuggling in which
the Customs were concerned, ho important cases
can be said to have been decided by the Court.
This does not apply to a few compromised civil
cases.
2. Finance.
(a) Tightness of money—to what extent due to
restriction of credit, exchange, insecurity, extra taxa
tion, ete.—The selling quotations of the Banks on
London and Bombay were as follows :—
1 London—
Highest .
,> r " u ‘ . Rials.
110 to £1.
Lowest .
• • *91
78 „ £1
Average .
98 „ £1
Bombay—
Highest .
9 • *99
834 „ Rs. 100
Lowest .
689 „ Rs. 100
Average .
• • * 99 ‘
739 „ Rs. 100
Owing to the nature of Bandar Abbas Commerce,
money may always be said to be tight, in the sense
that money is always in demand. The local mer
chants are engaged largely in clearing goods from
the Customs and forwarding them up-country^ for
which purpose money is required for payment
of customs duties and taxes. The appreciably in
creased customs duties caused an increased demand
for money.
Under the Government Trade Monopoly Law,
which governs the import and export of merchandise,
the relative Foreign Exchange has tu go through,
the hand of the two Agent Banks of the Govern
ment, i.e., The National Bank of Persia and the
Imperial Bank of Persia. This class of business
entails a great deal of extra work and trouble and
they do not feel cbmpensated by the small profit
made on Exporters^ Exchange.
During the year- the market in Free Exchange
was very dull, the majority of the business offering
being on India.
(fc) Evidence of .yr{vote capital unemployed or held
ohroad.—'Tfiere wan great inducement to import
foreign capital into, the country on account of de
preciation in! Persian currency and great disparity
between the Government rate of exchange and the
free rate in the bazaar but still owing to the ever
changing rules and regulations, it was thought risky
to introduce new capital into the country.
(c) Diversion of capital from trade to other purposes
or vice-versa. —Nil.
(d) Bankruptcies. —Nil.
' (e) Competition among local Banks. —The National
Bank have now been operating in Bandar Abbas
for two and a half years. The competition between
the two Banks (Imperial Bank of Persia and the
National Bank of Persia) has been very keen result
ing in finer margins in the rates and freer credit
facilities granted to the merchants. A great part
of their business appears to consist of operations in
Exporters’ Exchange and it seems that this class
of business gives them a great deal of trouble and
that the local staff is not adequate enough to cope
with it. The withdrawal of the Imperial Bank
of Persia Note issue is now near completion and
only a small percentage of the notes are still in cir
culation. Very few of the new National Bank
of Persia Notes are m use locally and none of the
new silver Rials have been issued.
3. Taxation.
(o) Effect on purchasing power. —Increased tax
ation under the guise of monopoly tax, surtax, road
tax, heavy demurrage on goods lying in the Customs,
have also tended towards the increase in prices of
commodities and the purchasing power of the public
has consequently diminished.
The surtax was raised from 120 to 134 per cent
in February and 150 in March and finally fixed at
160 per cent throughout the year.
(b) Fair and unfair incidence.—ad valorem
duty is assessed on the selling price of the article in
the bazaar, which usually fluctuates, and conse
quently the merchants have to pay duty not only
on the ci.f. value of the goods, but nearly 40 per
cent added, 15 per cent being in the name of ‘ Sudur ’
(export).
(e) Interference and obstructions on part of tax
collectors .—There is little to be heard of now in this
connection.
4. Military.
(а) Commandeering of transport. —Military opera
tions on a small scale were undertaken at the end of
April 1932 in the area of Biyaban when transport
was commandeered.
( б ) Extortions and interference with trade and in
industry .—Nil.
(c) Effects of conscription.—11 men were enlisted
for this force- during the year, and most of those