Coll 28/41 ‘Persia. Trade Reports. Kerman 1924–’ [‎44v] (88/313)

(i) Opening for British goods. —No prospect under
present circumstances.
0) Over trading. —No over trading worthy of
reference was witnessed.
{k) Commercial morality. —As reported in previous
years, the commercial morality continued to have
a declining tendency. The Hindu Capitalists were
encouraging it, as they had to discover some outlet
for their merchandise imported in big consignments.
But under the present straitened conditions, and in
the absence of those Capitalists, the commercial
morality has greatly suffered with the local mer
chants. The local Banks, especially the Imperial
Bank of Iran has curtailed such credit facilities.
(1) Working of Law Courts in commercial cases .—
The dilatory methods of settling commercial cases
in courts is still discernible, consequently the parties
involved always welcome Arbitration. Cases of a
commercial nature are only referred to the court,
when one of the parties concerned desires to prolong
the case for an indefinite period, at the expense of
both the parties. This is a general rule of proce
dure, and cannot be said to only affect the
foreigners.
A Sulhish (Small cause court) was opened in
Rafsinjan about the middle of the year.
2. Finance.
(a) Tightness of money, to what extent due to restric
tion of credit, exchange, insecurity, extra taxation,
and bad harvest, etc. —Money as usual was not plenti
ful during the year. The dullness of the carpet
market, the unsatisfactory condition of harvests,
and the trade restrictions, are among the chief,
factors for the tightness of money.
The average Selling rates between 21st March
1935 and 20th March 1936 were :—
Rials 93-20 per £.
Rials 696-00 per rupees Indian silver coin also widely used in the Persian Gulf. 100.
The maximum and minimum rates during the
same period were :—
/tials
Rials
Maximum. Minimum.
101-50 52-00 per £.
759-00 410-00 „ Rs. 100.
{b) Evidence of private capital unemployed or held
abroad. Kerman can safely be said to be devoid
of the merchant or capitalist class of her own, and
the few who exist do business as a second occupa
tion. Most of them are landlords, and do business
to establish credits with the Banks and in the Bazaar
as precautionary measure, to be of financial assistance
to them in bad years.
(c) Diversion of capital from trade to other purposes
or vice versa.—Owing to the formation of various
Syndicates and Companies with the support of the
Government for all important branches of Com
merce, most of the merchants are diverting their
capitals from individual trading to investing in such
companies, which at present give a good dividend
of from 15 to 30 per cent.
Other instances of diversion of capital from tradP^
to agriculture are also worthy of note.
(d) Bankruptcies. —No bankruptcies were brought
to notice during the year.
(e) Competition among local Banks. —As reported
in previous years, the National Bank of Iran has
gradually captured the bulk of the Banking business
in Kerman since its establishment for the following
reasons :—
(1) All transactions with local Government
Departments are conducted by this
Bank.
(2) At present they have more branches all
over the country, and bills on any of
the towns in the interior are accepted
for collection.
(3) They are more liberal in allowing credits
to customers though at higher terms
than those allowed by the Imperial Bank
of Iran.
(4) The Imperial Bank of Iran having curtailed
their Banking activities to a great
extent.
3. Taxation.
(а) Effect on purchasing power. —The introduc
tion of fresh taxes which are decidedly higher than
the old taxes (which were never fully and accurately
paid), has undoubtedly affected the purchasing
power of the inhabitants of this province, which,
is at a low ebb owing to general poverty of the public.
(б) Fair or unfair incidence. —The present system
of tax collection, which does not bring the tax collec
tors in close contact with the villagers, has not given
cause for any unfair incidents.
(c) Tax collection .-—The total amount of taxes
collected in the province amounted to over
Rials 4,000,000 (£50,000) during the year. The
taxes are divided under two sub-heads, viz. :—
“ Direct ” and “ Indirect ” Revenue.
Direct Revenue. —All fixed taxes which do not
alter come under this head and amounty to about
Rials 1,100,000 (£1,750). 7
Indirect Revenue. —Taxes collected from opium,
Araq (local liquor) wine and alcohol and Mustaqilat
(taxes on rent) come under this head and amount
to over Rials 3,000,000 (£37,500).
The total income under the new taxation does
not appear to have caused an increase in the total
Revenue, the income being the same under the old