MONEY AND CREDIT— COMMUNICATIONS
1133
to Russia, through Khorassan and Sistan to Afghanistan and India, and through Kermanshah to Baghdad.
Total trade between Persia and United Kingdom (in thousands of pounds) for 5 years : —
Imports from Persia to U.K. Exports to Persia from U.K.
1907
£
626 690
1908
£
430 477
1909
1910
1911
£
298 351
£
448 744
£
673
828
Money and Credit.
The Sh^h in 1889 granted a concession to Baron Julius de Reuter for the formation of a State Bank of Persia, with head office at Teheran and branches in the chief cities. The bank was formed in the autumn of the same year, with the title "The Imperial Bank of Persia," and incorporated by Royal Charter granted by H.M. the late Queen, and dated September 2, 1889. The authorised capital is 4 millions sterling, which may be increased. The bank started with a capital of one million sterling, of which the greater part was remitted to Persia at the then reigning exchange of 32-34. In consequence of the great fall in .silver and the rise in the exchange, to 50 or more, the capital was reduced in December, 1894, to 650,000^. The bank has the exclusive right of issuing bank-notes — not exceeding 800,000Z. without the assent of the Persian Government. The issue of notes is on the basis of the silver kran. In virtue of one of the articles of the concession the cash reserve for the first two years was 50 per cent., and afterwards 33 per cent. The bank had the exclusive right of working throughout the Empire the iron, copper, lead, mercury, coal, petroleum, manganese, borax, and asbestos mines, not already conceded. It started business in Pensia in October, 1889, in April, 1890, took ovei the Persian business of the New Oriental Bank Corporation (London), which had established branches and agencies in Persia in the summer of 1888, and now has branches at Tabriz, Resht, Kazvin, Meshed, Ispahan, Yezd, Shiraz, Kerman, Hamadan, Sistan, Kermanshah, Bushire, Muhamrah, Ahvaz, Sultanabad, and Bombay ; and agencies at several other towns. The mining rights were ceded to the Persian Bank Mining Rights Corporation, Limited, which was formed in April, 1890, and went into liquidation in January, 1894. There is also established at Tehran the Russian ' Banque d'Escompte,' formerly ' Banque des Prets de Perse ' (which is connected with the Russian State Bank and floated the loans of 1900 and 1902 to Persia), and a highly paid official permanently resides at Tehran as Russian ' Financial Agent in Persia.' A concession for a National Bank was signed, February 6, 1907. The capital of this bank will be 15,000,000 tomans. It will have the right to issue notes after the Imperial Bank's right has expired. It has not yet (January, 1913) been established. In July, 1907, a concession was granted for a German Bank for a period of 30 years. The capital is fixed at 200, 000^. It has not yet (January, 1913) been established.
Communications.
A small railway from Tehran to Shah Abdul-azim (six miles) was opened in July, 1888, and is in the hands of a Belgian company, ' Society des chemins de fer et tramways de Perse. ' The river Karun at the head of the
