Page 261 - Records of Bahrain (4) (i)_Neat

The pearl industry, 1924-1927 249

nfr-re of the prooondn.Tho diver therefore pays 20* on hit) Tloqera (whioh
in addition ho ofton receives in kind t an exhorbltont price-) whioh
ho hud advanced to him u year bo fore,and also 20* on hi a snlnf whioh
ho roooivod only at tho beginning of the season,say five rnontha before

the settlement .On tho 3alaf he thorn fore pays something a±hr 40^ Par
big
annum. The vicious circle starts with tho Merchants, of whom there ore
a few only .like Yusuf ICanoo, Yusuf Fukroo * some half dozen others,who
ore sufficiently wealthy to be able to ’sell1 tho grain on oredit.
Nakhudas who : ro ahort of cash to pay tho advances, have no other souroe
’rom whioh to borrow,* have to pay them large interest,which in turn
they debit to the divera.lt is in ffict « system of money lending by
a few wealthy inorchanta. It is not diffioult to see that by tho time he
hos repaid the two annual r.dvanooa ( amounting generally to about Rs
3oo or ^s 400) plus tho interest thoreon.the diver seldom has anything

loft from his share,or is often still indebted to the Nukhuda & beoomea
still further so when ho takos his fresh 'Tisqain1 ,
Many Nakhudas have boon in the habit of charging much more than 2o<5
interest,but they now any that they could monrgo if they were allowed to
ohnrge’up to 2o'> any oxoenn being inndmiasnble (but that many could not
raise money at loss^A could not carry on if this interest be not per­
mitted. In short/the divors have to accept the advances at any fancy
rate of interest the Nakhudas ploaso to ohurge them. In all probability

the big Hnkhud'tu do not take advances from Merchants at a 11,but them­
selves act as monoy lenders to thoir divors lthough some of the less
wealthy are obliged to ^ & probably have to pay heavy interest, which 3
passed on to the divor who has no :>» in the rout ter.
The question has now arisen as to wh.v.t rr-to of interest can be admitted
as roQsoSajbr by the civil court - the .Shura will of oourse sdmit no
interest-. As soon as the now system of accounts comes into force
disputes,which cannot then be very plentiful,except us regards old
aooounta.oan easily be settled in the civil courts,but it is necessary
that some reasonable limits should be set to the amount of interest
whioh oun be admittod .The Nakhudas besides thoir share of the pearls

oount on making a good deal from this form of money lending,whioh more­
over, praotioally enslaves tho diver * mokes it inpossible for him to