Page 167 - 5 Persian Trade rep BUSHIRE I_Neat

BUSH IIIE. 5
recovery of trade are not hopeful. Tins' import figures of 1009-10 so
far point to a more startling decline in imports than even the year
under review.
It remains to be seen whether the Persian Government will of
itself apply the proper remedies; for tlie Central Government being
too far removed to exercise an immediate influence, the restoration
of order can only possibly be successful under a strong Governor-
General of Fars, capable of stern repression of the tribes, and paying
special attention to keeping the trade routes clear for traffic and the
central districts quiet for the sale of goods.
The financial position of business in Bushire is at present un­
doubtedly serious; very many petty merchants arc hard pressed
for money and with no other capital than the running credit extended
to them by importing agents, after the losses already sustained through
robberies and unprofitable sales, they arc not in a strong position to
meet calls. As regards cotton piece-goods the credit system may be
said to have temporarily broken down.
Credit system.—Perhaps the most unsatisfactory feature in the
many bad debts brought into Court was shown in a disposition to
make the loss fall on creditor European firms; the intending bankrupt,
in making preparations for the declaration, would be careful to pay
tlie proceeds of whatever British goods he was able to realise to Persian
creditors, often mortgaging Iris landed and house property with friends,
and the European firms on putting forward their claims would find
little left to liquidate.
The position of European creditors in the liquidation of a soi-disajit
Persian bank nipt is at all times most difficult. The la w as administered
through the Persian Foreign Office agencies is sometimes slow to take
action and rudimentary in nature. Ample opportunity for falsifying
accounts exists, and it is rare that a bankrupt is found to have
account books such as show the sale price of goods; as often as not
the only entries made are the prices of goods received and the value of
drafts given in exchange.
There has been a feeling for some time past amongst Persian,
merchants of good standing that the smaller traders should be made
to keep proper books, but the powers necessary for imposing any
regulations with that object are at present lacking to the local
authorities.
Given that fraud lias been proved, or the bankrupt’s statements
considered unsatisfactory by creditors, there remains the difficulty
of procuring adequate punishment, partly explained by the spirit
of insubordination to local authorities now prevalent in Southern
Persia and by the consequent fear of the latter to attempt stem justice.
It has not been rare of late for the European merchant to be forced
to take a mortgage on the house property of a bankrupt in lieu of &
bad debt. Here again legislation is needed to obviate some of the
difficulties of the mortgagee. The existing proprietary rights of
Europeans in Persia are limited by the Treaty of Turkomantchai to
a dwelling-house and business premises. On the expiry of Jthe mort­
gage, if still unpaid, the creditor is placed in the awkward situation
of having to find a purchaser perforce. On the other hand, house
(225) A 3