Page 343 - Bahrain Gov Annual Reports (II)_Neat

47
Rs.
Decrease 1.58.° *3
Increase 5*9
Net Decrease '.57.494
hxftorts:—I lie increase in the collections frpm exports does not amount to much in cash ;•
hut it is thirty-nine per cent above the previous year, a noteworthy point, since it indicates
increased activity in the date market following a good harvest. There, is no ex|wrt duty
upon pearls, but upon pearl “Linga” shell, which formerly went to Hamburg in (iermany. This,
export of shell has practically fallen away; but there were, a few such exports not to Germany,
but to Iran.
*'!• ■Steamers:—The all-round decrease in collections is most noticeable in collections from
steamers’ cargoes. Here it. should be noticed that normally such collections would have increased,
since they are made ad valorem, and the cost of most goods has increased. Unfortunately the
steamers' service has become irregular, and decreased owing to the exigencies of Naval require­
ments; and consequently a very considerable quantity of goods intended for Hahrain has not come
forward from India, which resulted in less duty being collected. I’ossiblv such “shut out" goods
will come forward during 1360 A.II., and thus the Customs Duty will not be lost to the State,
but only postponed.
This factor, however, is not the principal reason for the marked decline in revenue during
the past year. The commercial position of the State of Bahrain may be better illustrated by a*
comparison of the imports of the principal commodities: —
COMPARISON OK PRINCIPAL COMMODITIES-.
,--------------YEAR *35*--------------' YEAR 1359---------------
Commodity. Quantity. .let rage value. Quantity. Average value.
Rice 4,02,300 cwts. aa.yB.7oo 3.3<?.527 cwts. -3,60,650
Wheat 16,100 cwts. 87,000 12,4811 cwts. 80,390
Flour 53,200 cwts. 2,78,400 7J»355 cwts. 4.39.340
Flour 866 c/s 8.730
Tea 3,200 c/s 2,07,600 2,687 c/s 2| I<l.740
Coffee 13,200 bags 4,86,300 12,559 bags 5,58,100
Sugar (soft) . 81,000 cuts. 5,18,400 48,966 cwts. 5,08,860
Pioce Goods.—
Cottons .... 23.95.400 13,22,900
Silks 2,S6,ooo 3,24,30°
It may be inferred from the above that while the imported quantities have decreased, the
values have increased, with the exception of wheat flour, a manufactured commodity, where the
quantities have also increased. It must be remembered that Hahrain is dependent upon India anti
Java for its supplies of the above foodstulTs; and the increased cost of those is due partly to local
speculation at the original markets, and partly to the increase in the charges for freight and war
insurance, which may be put at twenlv-livu per cent above pre-war rates.
Another important factor in local conditions which has developed owing to the war is the
suspension of credit on terms by the original sellers, local importers now obtaining their purchases
on the “cash and carry” basis; and in general all goods must be paid for before shipment. The
effect of this position is that local business can only be done by wealthy firms having adequate
capital to dispense with the need for credit facilities. Consequently the small importer is in process
of being eliminated from this kind of business and developing into a local wholesaler. Also, the
Food Control of selling prices, by limiting profits, operates to prevent the small dealer from
amassing capital at the expense of the poor consumers; and the ultimate effect will be that local
stocks are adjusting themselves to local needs. This is to the good, providing that a sufficient*
margin of stock is conserved to meet the contingency of fewer cargo steamers serving, this-port.
This increase in cost is most noticeable in the case of rice. The reduction in the quantity*
of wheat imported mav also be traced to the economic conditions in Iraq where its price rose so
high that none was exported. In the case of lea, the reduction in quantity is duo to a-considerable
reduction in local exports of this commodity. It is thought, also, that the imports of coffeo will
decrease because the mainland of Arabia has found it cheaper to import much of its coffee through
‘he P1,rt of Kuwait. There is now no trade in loaf sugar from Europe;.and the soft sugar is
preferred to the crystal sugar because it is cheaper and quite as good; but here again the high
Prices have reduced the quantities imported.