Coll 28/41 ‘Persia. Trade Reports. Kerman 1924–’ [‎97r] (193/313)

3
A5_
the booking during the year under record showed
a marked decrease. The orders for carpet, it might
be mentioned, are to a large extent paid for in ad-
advance, when the contracts are made.
22 . Taxation is undoubtedly heavy and affects all
classes but harvests, despite the depredations of
locusts, were fairly adequate. There is reported to
b$<l^urplus of grain in the Province, owing to large
qualities of wheat having been imported from other
Provinces.
23. The new law regarding Exchange was enforced
in the Province from the 7th March 1930. The
British subjects who have suffered most by the new
law are the Indian (Hindu) traders. The local
Manager of the Imperial Bank of Persia advised
them in time to buy exchange from the Bank by the
contract system whereby they would have been
able to obtain Rupees Indian silver coin also widely used in the Persian Gulf. at the contracted rate for at
least ten weeks from the date of the contract. They
did not take advantage of this advice with the result
that shortly afterwards they found themselves
unable to obtain any exchange at all from the
Banks. The total exchange required by them on
account of goods in stock, goods sold on credit and
cash in hand amounted to nearly ten lakhs One lakh is equal to one hundred thousand rupees of rupees Indian silver coin also widely used in the Persian Gulf.
and, after a good deal of telegraphic correspondence,
His Majesty’s Legation were able to obtain exchange
for one lakh One lakh is equal to one hundred thousand rupees of rupees Indian silver coin also widely used in the Persian Gulf. in the month of July.
Since then all endeavours to obtain exchange
for them have failed and though they have been
exporting silver and other commodities, the local
produce of the Province, they have lost over 50 per
cent, of their capital. The result has been that
the three Hindu firms have closed their business
within the last fifteen months and only two remain
who have practically stopped importing any fresh
stocks from Bandar Abbas. The local Managers of
these two firms are busy collecting their outstandings
which they find very difficult to do.
These Indian traders who handled 45 per cent,
of the Kerman import trade a couple of years ago
and 35 per cent, since the establishment of Soviet
trade, have been obliged to give up their business
solely on account of the exchange difficulties.
By exporting local produce the Hindus have been
able to convert their Krans into rupees Indian silver coin also widely used in the Persian Gulf. at an average
of 25 to 50 per cent, above the fixed control rate.
They had to account to their principals in rupees Indian silver coin also widely used in the Persian Gulf.
and with the fall in the Kran value their liabilities
in rupees Indian silver coin also widely used in the Persian Gulf. have caused them another loss of 25 to 50
per cent. In fact, as the result of the exchange
difficulties all import trade now remains in the hands
of the Russians or Persian local traders.
24. (b) Evidence of Private Capital Unemployed
or held abroad .—There is very little capital un
employed and none held abroad. On account of
the slump in the carpet business, local dealers have
large unsold stocks on their hands, so that a consi
derable percentage of the capital is now held up in
these goods.
25. The project for the erection of a cotton
spinning mill, started by His Majesty’s Consul, is
still being followed up and there are more hopeful
signs of finding the capital required, locally.
26. (c) Diversion of Capital from trade to other
purpose or vice versa. — Nil.
27. (d) Bankruptcies.—No bankruptcies of im
portance have taken place during the year.
(e) Competition among Local Banks. —The Persian
National Bank has gained in influence though not in
popularity.
A branch of this Bank was opened at Rafsinjan
in September, under a Persian Manager, and the
question of opening branches at Bam and Sirjan
also came under consideration during the latter
part of the year, but has been turned down for the
present.
The Imperial Bank of Persia lost a considerable
amount of custom as the result of some of the Hindu
firms closing down and others curtailing their com
mitments.
3. Taxation.
29. [a) Effect of Purchasing Power. —The introduc
tion of the new Municipal taxes has made the burden
of taxation heavier and helped to diminish the
purchasing power of the inhabitants, particularly
in the case of lower classes who are in the majority.
30. (b) Fair or unfair incidence. —Considering the
poor economic conditions, the incidence is decidedly
unfair especially so far as the poorer classes are
concerned.
31. The work of re-assessment of land revenue,
which was suspended temporarily in October 1929,
has been resumed during the year.
It is being assessed generally on a three and a half
per centum basis on the produce, where this is
favourable to the Government.
32. (c) Interference and obstruction on the part of
Tax Collectors. —The revenue authorities remain
uncompromising. Genuine cases calling for remis
sion and even relief in respect of taxation are not
taken up by the authorities through fear of being
suspected of corruption. In certain instances, whole
villages have been deserted through the Finance
authorities pressing for revenue, which could not be
paid by the inhabitants, who had become destitute
as the result of adverse conditions. In spite of the
arrears of revenue thus accruing, circulars are being
constantly received from Tehran urging the Finance
officials to bestir themselves.
4. Military.
33. (a) Commandeering of Transport. —Owing to a
recrudescence of disturbances in Lar in the summer
and various robberies on the Bandar Abbas-Kerman
road in the latter part of the year, there were constant
movements of troops from Kerman and motor trans
port was commandeered on many occasions. There
was, however, less interference with Indian drivers