Page 51 - 1 Persian Trade rep Bahrain 1_Neat

No. 481-A., dated (and reccivod) tlie list September 1908.
From—MAJOR F. B. Trideaux, Political Agent, Bahrein, Persian Gulf,
To—The Secretary to the Gorcrnmcnt India in the Foreign Department, Simla.
Under instructions from the Political Resident in the Persian Gulf, l have
the honour to submit the Trade Report of the Bahrein Islands for the year 1907*0$
together with statements of Imports and Exports and Shipping Returns.

Report on the Trade of the Bahrein Islands for the year igof-oS,
General Remarks,—The record for the year under report is a most gloomy
one, due mainly to the stagnation of the Pearl-trade on which industry the great
majority of the population of Bahrein depends directly or indirectly for a liveli­
hood. The tightness of money in America since 1905 has affected the demand
for pearls in Paris and London to such an extent that a considerable quantity of
the gems fished in 1905 and nearly all the take of 1906 and 1907 have been
returned to or left in the hands of the original, local buyers, who in consequence
have been deprived of all ready money for the purchase of customary luxuries
and the expansion of their ordinary business.
It Is said that at the present day the prices of various descriptions of pearls
have dropped to the figures wnich existed ten years ago or nearly 40 per cent.
The original owners, who sold largely on credit in 1905 and 1906 at prices which
seemed most remunerative, have row in many cases had to consent to a revision
of their bargains : for instance, the pre-eminent Arab dealer of Katar, referred
to in last year’s report, has persuaded his creditors to consent to their claims
being reduced by half, and still to wait a further indefinite period until he hardens
his heart to sell, he threatening in the alternative to declare himself bankrupt,
when his creditors, especially those of Bahrein and Koweit, would be put to
endless trouble to procure a proper division of the assets.
Another factor, which tended to demoralize the business life of the State
most seriously, was the appearance of the severest epidemic of plague which
has so far visited the islands. The outbreak manifested itself on the 19th April
1907 and the last death occurred on the 4th July 1907. Every town and village
of importance in the group of islands was affected, and it is estimated that the
seizures numbered 3,121, of which 1,889 were fatal. It is not surprising in these
circumstances that almost every foreigner who was not tied to the place by the
most important interests should have hastily fled in panic, and that many
even of the Sheikh's subjects should have temporarily migrated to the adjacent
territories of Katifand Katar, where, strange to relate, the infection was mercifully
not introduced, although a few pearlers died at sea on the banks from the dis­
ease.
The result of this exodus was that during the summer and autumn of 1907
the number of coolies for cargo-landing and shell cleaning work was unequal to
the demand, but in the spring of 1908 a large immigration re-commenced owing
to the failure of the winter rains in certain parts of Persia, and the cost of
labour has consequently fallen now to the rates that prevailed before 1905.
The total volume of trade, which was shown at Rs. 4,73,18,202 (£3,154,549)
in 1906, is estmated at Rs. 3.18,33,633 (£2,122,242) for 1907-08, giving a
decrease of 32*72 per cent, this year. Even so, however, the volume of trade
is 12 per cent, higher than it was three years previously and it has only been
exceeded by one other year 1905.
. ^*s confidently anticipated that as soon as the Pearl-trade has reverted to
its normal condition and the value of the gems obtained in the past three Year*
has been realized, the interrupted prosperity of the islands will return and ad-
vance at a surely increasing rate.
p ™e British firm, Messrs. Gray Paul & Co., and the German firm, Messrs.
R. Wdnckhaus & Co., have done business steadily throughout the year alike
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