Page 57 - 6 Persian Trade rep BUSHIRE 2_Neat

REPORT

OF TUB

TRADE OF BUS HIRE

for tho Persian Fiscal Year ending March 21st, 1917-

Dt Hb. Vice-Consul, II. G. Chick, C.I.E., Commercial Adviser to tho Political Resident in the
J ’ Persian Gulf.

Conditions affecting the Trade of Bushire In 1916-17-
The reports for tho years ending March 1915 Suffice it to say here'that during the latter half of
and March 191G, gave in some detail the causes fho period under review the value of British money
xroich have, as a result of the European wsr,^ sub­ declined in Southern Persia to nearer 30 Krans
stantially altered the normal conditions or the per £1 than 40 Krans, and an even lower figure
trade of the Persian Gulf and Southern Persia was ruliug in Northern Persia, and there seems
with Europe and India: and there is little to add every prospect of these lower rates of exchange
to those summaries as regards the year March prevailing throughout 1917-18. Probably there
1916—March 1917. is no other country in the world where British
money (both English and Indian) has sunk
As far as the values in English currency tabled during this war to half its normal and real value :
in this report are concerned, it is however im­ and this is all the more remarkable when it is
portant to remember that the exchange value of considered that the currency of Persia still con-
the Persian • Kran appreciated throughout the
period under review with a rapidi'.y and to an sits largely of bad or light-weight silver coin,
and that Persia is dependent on foreign trade for
extent for £5 years at least unprecedented in the
history of the financial relations of Persia with nearly all necessaries of life.
Europe : and that- whereas in the reports of the Similar or worse conditions have affected
past decade the trade of Bushire, and of Great the Russian rouble in the north.
Britain with Pers:a has been shown in sterling at For Europeans resident in the country, Per­
the usual Kran value of 55 or 60 Krans to £1 sians who own investments in Europe or India,
fterling, the figures here given have been calcula­ and export merchants this depreciation of the
ted at the rate of 40 Krang to £1 sterling, which value of the pound and the rupee in Persian
approximately expresses the mean for the average money has created a very trying state of affairs.
rates throughout Persia daring the twelve months. On the other hand importers, for such goods as
It is easy therefore to understand that, in com­ reach them from overseas, are able to pay very
parison with 1915-16 and previous years, this cheaply, and are therefore, with the exception of
i-crease of S3 per cent in the exchange value of these with large stocks bought in 1916 or before,
the silver Kran must largely account for what making a rich harvest. Many small trader* with­
otherwise might be assumed, at first sight, as an out capital in Bushire and elsewhere have greatly-
enormous expansion of the trade of South Persia improved their financial position : and several classes
firing 1918-17, not only via Bushire but also a* in Southern Persia have absorbed large sums of
*gards the other ports of entry, Mohammexah money.
xad Bandar Abbas. The second factor of importance affecting the
Farther allusion will be made to the causes statistics of trade rta Bushire during the year
underlying thi6 great appreciation of the Kran March 1916-17 was the closure of the main cars*
^der the heading “ Exchange 99 in this report. van routes rid Fimzabad and Borazjun, which