The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-07-24

.cientjhc iournal was also launched by the
ROYAL ColleCe but this, too. 10 now defunct.
Such is the record and history OF the present
condition OF the press In Persia. There 10 evil
IDENTIFY no immediate danger OF tho creation OF
fourth estate In tho dominions OF the Shah.
In A country possessing the traditions and
habits OF the land OF Iran the currency has at all
times offered an inviting field OF operation for
the devices OF sovereigns, Governors, and
Minister'S Tho fluctuations in the value OF
tho monetary unit have been enormous. and
at the time OF Mr.. Curzon's visit they touched
almost as low q point as has ever been reached.
In the middle OF the seventeenth csntury
tornn was equal to forty-six French livres-a
Iiyre Was then worth about thirty-seven cents.
Cbardin n littlo later. under Shah Suleiman.
oaye the value OF the ton,dn as from forty i've
to nifty livres. or. let us say. $3.50. Early In
tho following century Krusinsky reported its
value to be sixty livres. Then came the over
throw of the Sefavi dynasty by the invasion OF
tho Afghans. the reign Of Nadir Shah. and the
general anarchy and dislocation conse-
ouent upon his death. At tho beginning OF
this century. when security had been re-
established under tho Kaihar dynasty. NAL
colin gave the value OF tho toman as
Fraser computed It at SITS. Since then tho
value has fuctusted. with . general inclina-
ton to fall. In 1874 tho tonan was worth two
dollars, but when Mr.. Curzon was in Persia 1t
had sunk. as We have said. to 81. 43. Form erly
there was Government mint at nearly every
big town in Persia. and the autiquated prod
ucts OF those local dies are still som etimes en-
countered. Since 1877. however. tn Q sole mint
in the country Is the establishment at Tehe-
ran, which possesses German overseer and
French dies. The monetary unit is tho silver
kran. which weighs seventy-one grains. The
proportion Of alloy was originally only five per
cent. but It is now nominaly ten per cent. the
master OF tho mint. who pays five thousand
tomans Year for the concession. being accus-
toned to reimburse himself by slightly lower
ing the standard as well as deducting five per
cent. for seigneurage on whatever he coins.
Owing principally to the great excess OF I'M
ports over exports. which existed till within
recent years. gold may be said to have dis
appeared from circulation. Tho gold coins
nomnally current are quarter tomahs. half
tonans. and pieces OF ono. two. i've. and ten
ton,ans.
The abuses and drawbacks OF tho Persian
monetary system. and In fact, OF all mercan-
tile transactions in that country. rendered
the Introduction OF banks managed on tho
any material improvement Owing to the
enormous cost Of tho transport OF specie.
which could only be carried at much expense
on the backs Of beasts Of burden. merchants
experienced tho greatest difficulty In max
ing remittances to Europe. Small cliques
Of native money jobbers controlled the mar
kets in the provincial towns. Native capital
was frightened away from any enterprise
OF public advantage by the distrust attending
all investm ents Still worse was the practice OF
boarding. pursued BY every man Of wealth
from the Shah downward. Nothing could
demonstrate the retrograde condition Of Per-
sia's finance moro effectively than the exorbi-
tant rate Of interest cheerfully paid to native
usurers. Interest is limited by the Koran to
twelve per cent. but In tho middle OF this CEN
fury She'll recorded that it seldom amount
ed to less than twenty-five. and often reached
fifty and one hundred. per cent For loans OF
ready money native bankers could. till year
or two ago. easily procure two per cent. per
month. Such was the state of Persian finance
when In 1893 the New Oriental Bank Corpora
ton decided to include Persia within the
sphere Of its operations and established
branches in Teheran. Meshed. Tarbrtz. Resht,
Isfahan. Shiraz. and Bushirs. This bank
paid two and half per cont on cur
rent accounts and six per cont on deposits.
twelve per cent and was reported to have
lent money to the Shah at six to eight
per cent. It also introduced and familiarized
the natives with q form OF paper money in the
shape of n cashiers order. for sums from five
krans upward payable to the bearer. After
an existence OF two years. however. the Per-
sian branch Of this corporation was bought
out for substantial sum by the New Imperial
Bank OF Persia. for which Baron de Reuter- OBJ
tanned concession for sixty years.
which now reigns supreme. To the
Imperial Bank was also given an
extensive and important mi lining conces-
sion practically amounting to the command
Of the whole mineral resources OF the country.
but this has been transferred to a corporation
formed In London for its purchase and for tho
execution OF its terms. monopoly OF the
issue OF bank notes was given to this bank.
but it was stipulated that the amount put
forth should not exceed S4.O0O.OOO. without
the knowledge and assent Of the Persian Gov
eminent. and that for two years the bank should
secure its notes by a reserve in specie OF fifty
per cent. and afterward OF thirty-two per cent.
This is not it seems. the first time in history
that bank notes have been introduced In
Persia Just six hundred years ago the
scheme was attempted by Kei Khatu. one
OF the Mongol sovereigns OF the house Of
JUNK VIZ hHhil. VINO SucC86ueu tnnt cOnQuorOr
upon tho throne OF Iran. 1t was he who
WAS ruler In Persia when Marco Polo came
from the distant court o! Kublai Khan with the
T lrtar bride intended for his brother. Kei
Khatu had heard OF tho effort made by q men,
Der OF the Sung dynasty to introduce paper
money into China three centuries before, and
OF its revival in that country within the pre-
cedinG fifty years. The Persian Mongol. find
ing himself ovor ten million dollars in debt,
conceived the idea that by issuing n
paper currency. which would be bought
by his subjects. all the gold and sill
ver in tho kingdom would flow into
tho royal excheauer. To this end a royal
edict was issued iorbiddlng tho circulation of
the precious m etals. and ordering tho people to
accept bank notes instead. A howl OF univer-
sal execration greeted the PRONUNCIATION Of
the scheme: the Minister who had suggested
1t was torn to pieces by mob. and within
three days tho decree was repealed and the
first Persian experiment In tho way Of paper
money collapsed.