Page 168 - 5 Persian Trade rep BUSHIRE I_Neat

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property put under attachment by the Persian civil authority for
refusal of t he debtor (o satisfy proven claims brings still less satisfaction
to the European creditor, for the Religious Law requires for the legal
transfer of title deeds the mutual consent of the seller and buyer,
and Persians show great unwillingness to rent any premises from a
party claiming only by right of seizure or attachment.
The security of European trade also requires some more definite
attitude on the part of the Persian authorities and commercial com­
munity towards accepted hills and letters of lien.
As regards accepted hills there exist two circulars of (he Ministers
of Foreign Affairs and Commerce dated November, 1S93, and July,
1902, which purport to be official decrees declaring the binding nature
of acceptances ; and in the coast towns the principle appears to be
generally admitted by respectable Persian merchants. But in practice,
especially ■when trade is bad. all sorts of frivolous excuses are made
the pretext for a refusal to pay; a difference of account, a refusal
to pay interest as being contrary to Islamic law, losses made on the
sale of the goods against which the bill was drawn, an alleged lack of
leniency in giving rebates on former consignments, are quite sufficient
to enable the acceptor of a bill to successfully refuse payment, unless
a compromise to his satisfaction is arranged. Moreover, the rough and
ready commercial court, to which trade disputes are referred, and in
which the settlement lies almost entirely in the hands of assessors—
fellow merchants—wall seldom make an award for the full amount
claimed, and generally effects a compromise, to which the defendant
party is induced or compelled to consent. The bad state of credit is
responsible for the lax methods of payment, and the powerlessness
or unwillingness of the local government to enforce anv impartial
judgment on an unwilling subject is responsible for the frequent
losses to firms resulting from compromise.
As between European and Persian merchants the only alternative
for the prosecuting trader is to demand the imprisonment of the
defendant, and that course often fails through the unsatisfactory con­
dition of confinement for debt here and the intrigues of the debtor’s
friends.
The European recognition of the Law of Lien is only vaguely
understood amongst traders in Persia, and to our knowledge there is no
official pronouncement of the Persian Government in force regarding it.
Comparison of volume of trade.—At the nominal rate of exchange
the imports to Bushire during the year totalled 793,465/. as against
1,052,043/. in 1907-08, and the exports 432,5961. as against 497,990/.
in 1907-08. The total volume of trade therefore fell from 1,550,033/.
to 1.226,061/., a decrease of 323.972/.
Nearly all articles of imports, except food-stuffs, were adversely
affected and quantities diminished by the state of the country.
The import figures are lower than any for the past 10 years if the
local average rate of exchange is taken, as will be seen from the accom­
panying statement:—