The receipts from all sources for the year ending March 21, 1927, were officially estimated as follows :— • Expenditure for the same period was estimated at 243 million krans, made up as follows:— Receipts thus show a surplus over expenditure of 113 million krans, apart from a sum of about ii,000,000 p.a., the proceeds of a special surtax on imported tea and sugar, the proceeds of which are earmarked for railway construction.
It will be seen from the foregoing that land taxes and customs are the most important sources of revenue, closely followed by the royalties on oil paid by the Anglo-Persian Oil Co., Ltd. (16% on net profits), the total thus paid for the year 1926-1927 being nearly £1,400,000.
The re-survey of taxable areas has been attempted, but in the absence of an accurate cadastral survey and of skilled officials, little progress has been made; it is moreover open to question whether the results likely to be obtained would justify the heavy expenditure involved and the mentally unsettling effect of the operations upon the peasant population and on landowners.
The collection of land revenue has been systematized and is now effected by agents of the central Government posted through out the country, with satisfactory results.
The Customs Department is efficiently administered by Bel gians who have been in charge of this department since 1902 : but the proportion of Persians appointed to responsible posts is being steadily increased.
The national debt of Persia cannot be precisely stated, as various claims arising out of the War are unsettled, but it is esti mated at between 3 and 4 million pounds, or not much more than 7s. 6d. per head of the population and is being steadily reduced: the Persian Government has at all times scrupulously fulfilled its admitted obligations, and its financial status since the War has been correspondingly satisfactory. The action of the Government of the U.S.S.R. in officially cancelling the Persian debt to Russia, amounting to 324 million gold roubles, and the large sums ex pended in Persia by the belligerents, including the British Gov ernment during the World War, greatly contributed to the sound financial position in which Persia finds herself to-day.
Banking.—No banking system existed in Persia till 1899 when Baron Julius de Reuter obtained a concession for a State bank.
The concession primarily conveyed to the bank a monopoly of the issue of notes, and mining rights, and contained also other privileges, such as exemption from taxation, stamp duties, etc., but subject to payment by the Bank of a royalty of 6% on its net profits. In the same year the Imperial Bank of Persia was formed
in London under a British royal charter with an authorised capi tal of £4,000,000 in Ito shares, of which Li,000,000 was issued at £12 per share and fully paid up. Despite the conditions under which it has had to conduct its business and its varying fortunes, it has continued to progress, and is the repository for the Govern ment's funds. It has 24 branches in Persia, with its chief office at Tehran.
Other banks established in the country include branches of the New Oriental Banking Corporation at Bushire, Isfahan, Tehran and Tabriz, which were latterly (189o) absorbed by The Imperial Bank of Persia; the Banque de Prets de Perse, a Russian institu tion which disappeared with the Russian tsarist regime, and although its assets (and liabilities) were handed over to the Per sian Government by the Soviet as a free gift, it has never func tioned under its new owners, who restyled it the Bank-i-Iran (Bank of Persia) ; and has confined itself to the collection of out standing loans.
The Bank-i-Pahlavi formed as a convenience for Persian army officers was established in 1925, but its activities are now con fined to minor matters connected.with military movements and transport of mails, etc.
A National Bank is also in process of formation constituted by an act of the Majlis in May, 1927. It is to be an entirely Persian national institution, and the direction of its affairs is to be con trolled by officials selected by ministers of State. A German citi zen was appointed in 1928 as director.
A Soviet-owned bank, "Ruspers" is also established in Northern Persian towns, its activities being restricted to financing Russo Persian trade. The Imperial Ottoman Bank has also some agen cies in the country.
The main function of the Imperial Bank of Persia is to finance the requirements of the Persian Government and the trade of the country, both local and foreign. In this latter sphere extreme cau tion is necessary, in view of the special circumstances of the country. Insistence upon European standards and principles of banking has done much to improve conditions, yet there is still a great deal of room for improvement. For example up to quite recently there has been no proper safeguard for bills of exchange and no machinery exists by which an irregular bill of exchange can be noted or protested, but an improvement in this respect is fore shadowed by discussions in Parliament of a commercial code, the compilation of which has been entrusted to Continental jurists.