‘Persia – especially Seistan’ [‎42v] (83/949)

5 °
REPORT ON TRADE OF PERSIA.
The nickel coin is struck for the Persian mint in Belgium, and the 5
kran pieces in Russia. Cnly a small quantity of the latter have been
circulated.
Imperial Bank of Persia notes are legal tender, and issued in denominations
of 1 toman 10,000 Persian dinars, or a gold coin of that value. , 2 tomans 10,000 Persian dinars, or a gold coin of that value. , 3 tomans 10,000 Persian dinars, or a gold coin of that value. , 5 tomans 10,000 Persian dinars, or a gold coin of that value. , &c. (10 krans = I toman 10,000 Persian dinars, or a gold coin of that value. ).
Gold coin is also struck at the Persian mint in pieces of 1 ashrafi, 2
ashrafies, &c., and are often called gold tomans 10,000 Persian dinars, or a gold coin of that value. , but have no legal parity with
the silver coinage, and are dealt in at fluctuating rates.
Most of the Persian traders keep their business accounts with native
bankers (sarofs) from whom they get advances in current account, and
the importers also usually find it convenient to keep accounts with these
sarofs.
Teheran is now the central exchange and money market.
The average rates of exchange there for 3 months date—Imperial Bank of
Persia—drafts on London have been :—
per £ stg.
For
1897 ...
... krans 51*20
M
1898 ...
.. 5 o8 5
...
)•
J899 ...
5 2 '
• • •
»
1900 ...
„ 5 1 ’ 10
• • •
}>
1901 ...
5 2 ‘ 5 °
...
)'
1902 ...
,, 55'45
...
>>
T 9 03 ...
55 ' 7 °
...
to end November.
The rate of sterling exchange in Tabriz is generally \ to 1 per cent, below
Teheran (*.<?., less krans per £); in Resht at par with Teheran to 1 per cent,
below Teheran rates ; in Meshed | to per cent, below Teheran; in Ispahan
and Yezd ^ to 1 per cent, above Teheran ; in Hamadan,. Kermanshah, and
Shiraz 1 to ij per cent, above Teheran ; and in Bushire ij to 2 per cent,
above Teheran.
The imports in Southern Persia always exceed the exports, whilst that
position is frequently reversed in the northern provinces, especially in the
autumn, when produce is moved.
The constant stream of pilgrims to Bagdad, and Kerbela carries large
quantities of krans to Bagdad, which are remitted again by bankers to Ker
manshah and Bushiie for purchase of drafts on London.
Competition.
The British importer finds his most formidable competitor in the Banque
d’Escompte de Perse. .During the last two years this bank, through its
branches at Teheran, Tabriz, and Meshed, has made large imports of Russian
merchandise, chiefly on indents from clients.
They keep samples and price lists from which clients can fill their orders.
The following transaction in prints, reported at Tabriz, appears to comprise
most of the conditions usually arranged.
The client lodged a margin (his own promissory note) with the indent.
On arrival of the goods the bank debited him with invoice cost and charges
in roubles, plus 2 per cent, commission, and interest ran at 8 per cent,
from date of arrival. The client paid 33 per cent, of the amount in krans,
for which he was granted a rate of exchange 1 to percent, better than
the ruling market rate of the day, and received delivery of the goods. The
balance was payable within six months at client’s option. The client at
the same time obtained a three months’ option at the same favourable rate of
exchange for any payments to account of the balance due in roubles (being
thus at liberty during these three months to pay at the current rate o'f
exchange if rates turned in his favour). The option in exchange was pro
bably an exceptional condition, but the bonus of 1 to i-J per cent, on the
market rate of the day was for a time constantly granted to applicants for
drafts able to prove that such remittances were in payment of merchandise