'Administration Report of the Persian Gulf for the year 1932' [‎556v] (16/72)

8
more profitable to keep out of the way the smugglers’ risks are reduced to a
minimum. The smugglers are, however, experiencing difficulty in establishing
friendly relations with the Navy and in the meantime additional care is being
exercised.
The trade monopoly law of 25th February 1031, which, with its effect on the
trade of the country, was fully dealt with in the last Administration Report, has
reduced the country to a piHable state from which progress is not promising.
The scheme is undoubtedly workable but only as a cumbersome and freak ex
periment which could hardly hope ever to prove a panacea for the grave
economic illness with which the country is afflicted.
An export system which encourages the disposal of the country’s produce
at a loss and depends on the sale of export certificates for its profit can only
increase the burden on the people. The importer is obviously compelled to add
the price of the export certificate (which he has purchased in order to obtain
permission to import), to the cost of the goods he imports. In these circum
stances the trade of the country is as gloomy in prospect as in retrospect.
Owing to the tightness of money and the consequent inability of merchants
to take up documents, large stocks of goods accumulated in the customs sheds,
which have been practically full throughout the year. The cost of import per
mits, increased customs dues and road tax added to the cost,' c. i. f. Bushire, of
foreign-made products so enhance the price at which they must be sold that the
people who formerly purchased them are now unable to afford them. In view
of the retrenchment which the general and prolonged crisis has imposed on all
classes it is doubtful if these goods could now be disposed of even at their former
price.
Terms of business.—The general terms at present offered to Persian merch
ants b\ foreign suppliers are not indicative of.much confidence. A percentage
up to twenty-five, is required with the order and the balance is payable against
shipping documents m Bushire. In very few exceptional cases are documents
released against acceptance of bills at sixty or ninety days but there is probablv
no merenant m Bushire to whom such terms would at present be justifiable It
1 S ’ - Turn’ ™ siom * r y f or Bushire merchants to despatch goods to the interior
c gainst bills drawn on the consignees on arranged terms, varying between thirtv
and one hundred and fifty days after sight of • the goods ‘ the terns beiiX
dependent on the nature of marketability of the merchandize. °
Banks.—There are three banks in Bushire. The Imperial Bank of Persia
the National Bank and the Russian Bank. The National Bank is reported to
tCwerial B?nf T J ^ r p a " d :.!° ha ™ its to the detriment of
of governmental scrutiny of aeco.mts kept "at"the NationsBank“THho^gh 68 !
finance =nS ^ ^ ^ applied &
In order to attract business the Russian Bank, which was opened in Anvil
offered 1 per cent, interest on current accounts, 3 per cent, on deposit aecomVts
bSfFrBw y< T’ am ? Pe v r < ' e ! lt ' on de POslts for three rears. If was further
ma.ed that only merchants with current accounts at the Bank would be
allowed to do business with the Russian Trading Company. A number of the
smaller merchants opened nominal accounts but onlv one or two of the more
to‘ 1 the bank radelS ’ exlstill S comffiif meiits, were'induced to transfer funds
T '. ,c a t > ' senc o of a crop of bankrupt firms is more an indication of the con
sen ation of resources than the result of healthy business as merchants are sahl
as ssaa!« 5 St—* **»- ™>- -mSsirs
Communications.
is™”
suitable material. The incidence of r »m neve°r fail t of mon8 >'—mostly on un-
traffic. Other parts of the Bushire ‘ihirS S u to °u Se 16 road to "''leolod
ably improved by widening at cortai„' S poliits and t v tim f?" consifler -
nlong the edge at the most dangerous .stretches A thoZh ^hn ° f S"' parapefs
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