CHAPTER XI

Legations—Germany a stumbling-block to Russia's and England's supremacy—Sir Arthur Hardinge, British Minister in Teheran—His talent, tact, and popularity—The British Legation—Summer quarters—Legation guards—Removal of furniture.

Aslate as 1872 there were only four Legations in Teheran: the English, French, Russian and Turkish; but since then the Governments of Austria, Belgium, Holland, and the United States have established Legations in the Persian capital. By the Persians themselves only four are considered of first-class importance, viz.: the British, Russian, Turkish and Belgian Legations, as being more closely allied with the interests of the country. The Austrian Legation comes next to these in importance, then the German.

American interests are so far almost a negligible quantity in Persia, but Germany is attempting to force her trade into Persia. In future, if she can realise her railway schemes in Asia Minor, Germany will be a very serious stumbling-block to England's and Russia's supremacy, both in North and Southern Persia. Germany's representative in Teheran is a manof considerable skill and untiring energy. No doubt that when the opportune time comes and Germany is ready to advance commercially in the Persian market, England in particular will be the chief sufferer, as the British manufacturer has already experienced great difficulty in contending with the cheap German goods. Even in India, where transport is comparatively easy, German goods swamp the bazaars in preference to English goods. Much more will this be the case in Persia when the railway comes to the Persian boundary.

The German Minister is certainly sparing no efforts to foster German interests in Persia, and the enterprising Emperor William has shown every possible attention to the Shah on his visit to Berlin, in order that the racial antipathy, which for some reason or other Persians entertain towards Germans, may with all due speed be wiped out.

To us the British Legation is more interesting at present. We may well be proud of our present Minister, Sir Arthur Hardinge, a man of whose like we have few in our diplomatic service. I do not think that a man more fit for Persia than Sir Arthur could be found anywhere in the British Empire. He possesses quite extraordinary talent, with a quick working brain, a marvellous aptitude for languages—in a few months' residence in Persia he had mastered the Persian language, and is able to converse in it fluently—and is endowed with a gift which few Britishers possess, refined tact and a certainamount of thoughtful consideration for other people's feelings.

Nor is this all. Sir Arthur seems to understand Orientals thoroughly, and Persians in particular. He is extremely dignified in his demeanour towards the native officials, yet he is most affable and cheery, with a very taking, charming manner. That goes a much longer way in Persia than the other unfortunate manner by which many of our officials think to show dignity—sheer stiffness, rudeness, bluntness, clumsiness—which offends, offends bitterly, instead of impressing.

A fluent and most graceful speaker, with a strong touch of Oriental flowery forms of speech in his compliments to officials, with an eye that accurately gauges situations—usually in Persia very difficult ones—a man full of resource and absolutely devoid of ridiculous insular notions—a man who studies hard and works harder still—a man with unbounded energy and an enthusiast in his work—a man who knows his subject well, although he has been such a short time in Teheran—this is our British Minister at the Shah's Court.

Nor is this faint praise. Sir Arthur Hardinge has done more in a few months to save British prestige and to safeguard British interests in Persia than the public know, and this he has done merely by his own personal genius and charm, rather than by instructions or help from the home Government.

While in Teheran I had much opportunity ofmeeting a great many high Persian officials, and all were unanimous in singing the praises of our new Minister. Many of them seemed very bitter against some of his predecessors, but whether the fault was in the predecessors themselves or in the home Government, it is not for me to say. Anyhow, bygones are bygones, and we must make the best of our present opportunities. The staff at our Legation and Consulate is also first-class.

It is to be hoped, now that the South African war is over, that the Government will be able to devote more attention to the Persian Question, a far more serious matter than we imagine; and as extreme ignorance prevails in this country about Persia—even in circles where it should not exist—it would be well, when we have such excellent men as Sir Arthur Hardinge at the helm, in whose intelligence we may confidently and absolutely trust, to give him a little more assistance and freedom of action, so as to allow him a chance of safeguarding our interests properly, and possibly of preventing further disasters.

It is not easy for the uninitiated to realise the value of certain concessions obtained for the British by Sir Arthur Hardinge, such as, for instance, the new land telegraph lineviaKerman Beluchistan to India. Of the petroleum concessions, of which one hears a great deal of late, I would prefer not to speak.

The Legation grounds in Teheran itself are extensive and beautiful, with a great many finetrees and shady, cool avenues. The Legation house is handsomely furnished, and dotted all over the gardens are the various other buildings for secretaries, attachés, and interpreters. All the structures are of European architecture—simple, but solid. In summer, however, all the Legations shift their quarters to what is called in Teheran "la campagne deGolahek, de Tejerish, de Zargandeh,"—by which gracefully misleading and misapplied terms are indicated the suburban residences of the Legations, at the foot of the arid, barren, hot, dusty Shamran range of mountains.

Golahek, where the British Legation is to be found, does actually boast of a few green trees in the Legation grounds; and a cluster or two of nominally "green" vegetation—really whitish brown—can be seen at Zargandeh, where the Russian and Belgian Legations are side by side, and Tejerish, where the Persian Foreign Office and many Persian officials have their summer residences.

The drive from Teheran to Golahek—seven miles—is dusty beyond words. There are wretched-looking trees here and there along the road, so dried and white with dust as to excite compassion. Half-way to Golahek the monotony of the journey is broken by a sudden halt at a khafe-khana, into which the coachman rushes, leaving the horses to take care of themselves, while he sips refreshing glasses of tea. When it suits his convenience he returns to splash buckets of water between the horses' legsand under their tails. This, he told me, in all seriousness, was to prevent sunstroke (really, the Persian can be humorous without knowing it), and was a preventive imported with civilised ways from Europe! The ears and manes of the animals are then pulled violently, after which the horses are considered able to proceed.

Persian Cossacks (Teheran) Drilled by Russian Officers.

The Persian Government gives each Legation a guard of soldiers. The British Legation is guarded by infantry soldiers—an untidy, ragged, undisciplined lot, with cylindrical hats worn at all angles on the side of the head, and with uniforms so dirty and torn that it is difficult to discern what they should be like. Nearly all other Legations are provided with soldiers of the (Persian) Cossack regiment, who are infinitely better drilled and clothed than the infantry regiments. They are quite military in appearance. It was believed that these Cossacks, being drilled by Russian military instructors, would not be acceptable at the British Legation, hence the guard of infantry soldiers.

The Russian Legation has two additional Russian cavalry soldiers.

The country residences of all the Legations are quite comfortable, pretty and unpretentious, with the usual complement of furniture of folding pattern, so convenient but so inartistic, and a superabundance of cane chairs. Really good furniture being very expensive in Teheran, a good deal of the upholstery of the Teheran Legations is conveyed to the country residences for the summer months. Perhaps nothing is moreamusing to watch than one of these removals to or from the country. Chairs, tables, sofas, and most private effects are tied to pack-saddles on ponies, mules or donkeys, with bundles of mattrasses, blankets, and linen piled anyhow upon them, while the more brittle articles of the household are all amassed into a high pyramid on a gigantic tray and balanced on a man's head. Rows of these equilibrists, with the most precious glass and crockery of the homestead, can be noticed toddling along on the Golahek road, dodging carriages and cavaliers in a most surprising manner. They are said never to break even the smallest and most fragile articles, but such is certainly not the case with the heavily laden donkeys and mules, which often collide or collapse altogether, with most disastrous results to the heavier pieces of furniture.

On my arrival in Teheran I received a most charming invitation to go and stay at the British Legation, but partly owing to the fact that I wished to remain in town and so be more in touch with the natives themselves, partly because I wished to be unbiassed in any opinion that I might form, I decided not to accept anybody's hospitality while in Teheran. This I am very glad I did, for I feel I can now express an opinion which, whether right or wrong, is my own, and has not been in any way influenced by any one.

Visits to high Persian officials—Meftah-es-Sultaneh—Persian education—A college for orphans—Uncomfortable etiquette—The Foreign Office—H.E. Mushir-ed-Doulet, Minister of Foreign Affairs—Persian interest in the Chinese War of 1900—Reform necessary.

Perhapsthe description of one or two visits to high Persian officials may interest the reader.

Through the kindness of the Persian Legation in London I had received letters of introduction which I forwarded to their addresses on my arrival in Teheran. The first to answer, a few hours after I had reached Teheran, was Meftah-es-Sultaneh (Davoud), the highest person in the Foreign Office after the Minister, who in a most polite letter begged me to go to tea with him at once. He had just come to town from Tejerish, but would leave again the same evening.

The Eftetahié College, supported by Meftah-el-Mulk.

Escorted by the messenger, I at once drove to Meftah's Palace, outwardly, like other palaces, of extremely modest appearance, and entered by a small doorway leading through very narrow passages. Led by my guide, we suddenly passed through a most quaint court, beautifully clean and with a pretty fountain in the centre,—butno time was given me to rest and admire. Again we entered another dark passage, this time to emerge into a most beautiful garden with rare plants and lovely flowers, with a huge tank, fountains playing and swans floating gracefully on the water. A most beautiful palace in European architecture of good taste faced the garden.

I was admitted into a spacious drawing-room, furnished in good European style, where Meftah-es-Sultaneh—a rotund and jovial gentleman—greeted me with effusion. Although he had never been out of Persia, he spoke French, with a most perfect accent, as fluently as a Frenchman.

What particularly struck me in him, and, later, in many other of the younger generation of the upper classes in Persia, was the happy mixture of the utmost charm of manner with a keen business head, delightful tact and no mean sense of humour. Meftah-es-Sultaneh, for instance, spoke most interestingly for over an hour, and I was agreeably surprised to find what an excellent foreign education students can receive without leaving Persia. It is true that Meftah is an exceptionally clever man, who would make his mark anywhere; still it was nevertheless remarkable how well informed he was on matters not concerning his country.

He comes from a good stock. His father, Meftah-el-Mulk, was Minister member of the Council of State, a very wealthy man, who devoted much of his time and money to doinggood to his country. Among the many praiseworthy institutions founded and entirely supported by him was the college for orphans, the Dabetsane Daneshe, and the Eftetahié School. The colleges occupy beautiful premises, and first-rate teachers are provided who instruct their pupils in sensible, useful matters. The boys are well fed and clothed and are made quite happy in every way.

Meftah told me that His Excellency the Minister of Foreign Affairs wished to see me, so it was arranged that I should drive to Tejerish the next morning to the Minister's country residence.

As early as fivea.m.the following day I was digging in my trunks in search of my frock-coat, the only masculine attire in Persia that is considered decent, and without which no respectable man likes to be seen. Then for the tall hat; and with the temperature no less than 98° in the shade I started in an open victoria to drive the nine miles or so to the appointment.

Not being a Persian myself, and not quite sharing the same ideas of propriety, I felt rather ridiculous in my get-up, driving across the sunny, dusty and barren country until we reached the hills. I had to keep my feet under the seat of the carriage, for when the sun's rays (thermometer above 125°) struck my best patent-leather shoes, the heat was well-nigh intolerable.

At last, after going slowly up-hill through winding lanes enclosed in mud walls, and alongdry ditches with desiccated trees on either side, we arrived at theCampagne de Tejerish, and pulled up in front of a big gate, at the residence of the Minister.

The trials of the long drive had been great. With the black frock-coat white with dust, my feet absolutely broiled in the patent shoes, and the perspiration streaming down my forehead and cheeks, I really could not help laughing at the absurdity of civilised, or semi-civilised fashions, and at the purposeless suffering inflicted by them.

There were a number of soldiers at the gate with clothes undone—they were practical people—and rusty muskets resting idle on a rack.

"Is Meftah-es-Sultaneh here?" I inquired.

"Yes, he is waiting for you," answered a soldier as he sprang to his feet. He hurriedly buttoned up his coat and hitched his belt, and, seizing a rifle, made a military salute in the most approved style.

An attendant led me along a well-shaded avenue to the house, and here I was ushered into a room where, round tables covered with green cloth, sat a great many officials. All these men wore pleated frock-coats of all tints and gradations of the colours of the rainbow. One and all rose and politely saluted me before I sat down.

Through the passage one could see another room in which a number of other officials, similarly clad and with black astrakan caps, were opening and sorting out correspondence.

Suddenly there was a hurried exit of all present—very much like a stampede. Up the avenue a stately, tall figure, garbed in a whitish frock-coat over which a long loose brown coat was donned, walked slowly and ponderously with a crowd of underlings flitting around—like mosquitoes round a brilliant light. It was Mushir-ed-Doulet, the Minister of Foreign Affairs. He turned round, now to one, then to another official, smiling occasionally and bowing gracefully, then glancing fiercely at another and sternly answering a third.

H. E. Mushir-ed-Doulet, Minister of Foreign Affairs.

I was rather impressed by the remarkable facility with which he could switch on extreme courteousness and severity, kindliness and contempt. His face was at no time, mind you, subjected to very marked exaggerated changes or grimaces, such as those by which we generally expect emotions to show themselves among ourselves, but the changes in his expression, though slight, were quite distinct and so expressive that there was no mistake as to their meaning. A soft look of compassion; a hard glance of offended dignity; the veiled eyes deeply absorbed in reflection; the sudden sparkle in them at news of success, were plainly visible on his features, as a clerk approached him bringing correspondence, or asking his opinion, or reporting on one matter or another.

A considerable amount of the less important business was disposed of in this fashion, as the Minister strode up the avenue to the Foreign Office building, and more still with two or threeof the more important personages who escorted him to his tents some little way from the avenue.

Meftah-es-Sultaneh, who had disappeared with the Minister, hurriedly returned and requested me to follow him. On a sofa under a huge tent, sat Mushir-ed-Doulet, the Minister, who instantly rose and greeted me effusively as I entered. He asked me to sit on his right on the sofa while Meftah interpreted. His Excellency only spoke Persian. Cigarettes, cigars, coffee and tea were immediately brought.

The Minister had a most intelligent head. As can be seen by the photograph here reproduced, he might have passed for a European. He was extremely dignified and business-like in his manner. His words were few and much to the point.

Our interview was a pleasant one and I was able to learn much of interest about the country. The Minister seemed to lay particular stress on the friendly relations of Russia and England, and took particular care to avoid comments on the more direct relations between Persia and Russia.

One point in our conversation which his Excellency seemed very anxious to clear up was, what would be the future of China? He seemed keenly interested in learning whether Russia's or England's influence had the supremacy in the Heavenly Empire, and whether either of these nations was actually feared by the Chinese.

"Will the Chinese ever be able to fightEngland or Russia with success? Were the Chinese well-armed during the war of 1900? If properly armed and drilled, what chances had the Chinese army of winning against the Allies? Would China be eventually absorbed and divided into two or more shares by European powers, or would she be maintained as an Empire?"

Although the Minister did not say so himself, I could not help suspecting that in his mind the similarity and probably parallel futures of China and Persia afforded ground for reflection.

There is no doubt that in many ways the two countries resemble one another politically, although Persia, owing to her more important geographical position, may have a first place in the race of European greed.

The interest displayed by Persians of all classes in the Chinese war of 1900 was intense, and, curiously enough, the feeling seemed to prevail that China had actually won the war because the Allies had retreated, leaving the capital and the country in the hands of the Chinese.

"More than in our actual strength," said a Persian official once to me, "our safety lies in the rivalry of Great Britain and Russia, between which we are wedged. Let those two nations be friends and we are done for!"

After my visit to the Minister of Foreign Affairs I had the pleasure of meeting the Prime Minister, the Minister of War, and the Minister of Public Works. I found them all extremely interesting and courteous and well up in their work. But although talent is notlacking in Persia among statesmen, the country itself, as it is to-day, does not give these men an opportunity of shining as brightly as they might. The whole country is in such a decayed condition that it needs a thorough overhauling. Then only it might be converted into quite a formidable country. It possesses all the necessary requirements to be a first-class nation. Talent in exuberance, physical strength, a convenient geographical position, a good climate, considerable mineral and some agricultural resources, are all to be found in Persia. All that is wanted at present is the development of the country on a solid, reliable basis, instead of the insecure, unsteady intrigues upon which business, whether political or commercial, is unfortunately carried on in the present state of affairs.

No one realises this better than the well-to-do Persian, and nothing would be more welcome to him than radical reform on the part of the Shah, and the establishment of the land of Iran on unshakable foundations. With a national debt so ridiculously small as Persia has at present, there is no reason why, with less maladministration, with her industries pushed, with her army reorganised and placed on a serviceable footing, she should not rank as one of the first and most powerful among Asiatic independent nations.

We have seen what young Japan, against all odds, has been able to accomplish in a few years. All the more should a talented race like thePersians, situated to begin with in a far less remote position than Japan, and therefore more favourably for the acquisition of foreign ways, be able to emulate, and even in a short time surpass, the marvellous success attained by the little Islanders of the Far East.

It is grit that is at present lacking in Persia. The country has a wavering policy that is extremely injurious to her interests. One cannot fail to compare her to a good old ship in a dangerous sea. The men at her helm are perplexed, and cannot quite see a clear way of steering. The waves run high and there are plenty of reefs and rocks about. A black gloomy sky closes the horizon, forecasting an approaching cyclone. The ship is leaking on all sides, and the masts are unsteady; yet when we look at the number of rocks and reefs and dangers which she has steered clear through already, we cannot fail to have some confidence in her captain and crew. Maybe, if she is able to resist the fast-approaching and unavoidable clash of the wind and sea (figuratively England is the full-blown wind, Russia the sea)—she may yet reach her destination, swamped by the waves, dismantled, but not beyond repair. Her damage, if one looks at her with the eye of an expert, is after all not so great, and with little present trouble and expense she will soon be as good as new. Not, however, if she is left to rot much longer.

Such is Persia at present. The time has come when she must go back into the shelter of a safe harbour, or face the storm.

The Persian army—The Persian soldier as he is and as he might be—When and how he is drilled—Self-doctoring under difficulties—Misappropriation of the army's salary—Cossack regiments drilled by Russian officers—Death of the Head Mullah—Tribute of the Jews—The position of Europeans—A gas company—How it fulfilled its agreement.

A painfulsight is the Persian army. With the exception of the good Cossack cavalry regiment, properly fed, dressed, armed and drilled by foreign instructors such as General Kossackowski, and Russian officers, the infantry and artillery are a wretched lot. There is no excuse for their being so wretched, because there is hardly a people in Asia who would make better soldiers than the Persians if they were properly trained. The Persian is a careless, easy-going devil, who can live on next to nothing; he is a good marksman, a splendid walker and horseman. He is fond of killing, and cares little if he is killed—and he is a master at taking cover. These are all good qualities in a soldier, and if they were brought out and cultivated; if the soldiers were punctually paid and fed and clothed and armed, there is no reason why Persia should not have as good an army as any other nation. Thematerial is there and is unusually good; it only remains to use it properly.

Persian Soldiers—The Band.

Recruits Learning Music.

I was most anxious to see the troops at drill, and asked a very high military officer when I might see them.

"We do not drill in summer," was the reply, "it is too hot!"

"Do you drill in winter?"

"No, it is too cold."

"Are the troops then only drilled in the autumn and spring?"

"Sometimes. They are principally drilled a few days before the Shah's birthday, so that they may look well on the parade before his Majesty."

"I suppose they are also only dressed and shod on the Shah's birthday?"

"Yes."

"What type and calibre rifle is used in the Persian army?"

"Make it plural, as plural as you can. They have every type under the sun. But," added the high military officer, "we use of course 'bullet rifles' (fusils à balle) not 'small shot guns'!"

This "highly technical explanation" about finished me up.

As luck or ill-luck would have it, I had an accident which detained me some four weeks in Teheran. While at the Resht hotel, it may be remembered how, walking barefooted on the matting of my room, an invisible germ bored its way into the sole of my foot, and I could not get it out again. One day, in attempting to make its life as lively as the brute made my foot, Iproceeded to pour some drops of concentrated carbolic acid upon the home of my invisible tenant. Unluckily, in the operation my arm caught in the blankets of my bed, and in the jerk the whole contents of the bottle flowed out, severely burning all my toes and the lower and upper part of my foot, upon which the acid had quickly dripped between the toes.

With the intense heat of Teheran, this became a very bad sore, and I was unable to stand up for several days. Some ten days later, having gone for a drive to get a little air, a carriage coming full gallop from a side street ran into mine, turning it over, and I was thrown, injuring my leg very badly again; so with all these accidents I was detained in Teheran long enough to witness the Shah's birthday, and with it, for a few days previous, the "actual drilling of the troops."

I have heard it said, but will not be responsible for the statement, that the troops are nearer their full complement on such an auspicious occasion than at any other time of the year, so as to make a "show" before his Majesty. Very likely this is true. When I was in Teheran a great commotion took place, which shows how things are occasionally done in the land of Iran. The ex-Minister of War, Kawam-ed-douleh, who had previously been several times Governor of Teheran, was arrested, by order of the Shah, for embezzling a half year's pay of the whole Persian army. Soldiers were sent to his country residence and the old man, tied on a white mule, was dragged into Teheran. His cap havingbeen knocked off—it is a disgrace to be seen in public without a hat—his relations asked that he should be given a cap, which concession was granted, on payment of several hundred tomans. A meal of rice is said to have cost the prisoner a few more hundred tomans, and so much salt had purposely been mixed with it that the thirsty ex-Minister had to ask for copious libations of water, each tumbler at hundreds of tomans.

Several other high officials were arrested in connection with these army frauds, and would probably have lost their heads, had it not been for the special kindness of the Shah who punished them by heavy fines, repayment of the sums appropriated, and exile. It is a well-known fact in Persia that whether the frauds begin high up or lower down in the scale of officials, the pay often does not reach the private soldier, and if it does is generally reduced to a minimum.

The food rations, too, if received by the men at all, are most irregular, which compels the soldiers to look out for themselves at the expense of the general public. This is a very great pity, for with what the Shah pays for the maintenance of the army, he could easily, were the money not appropriated for other purposes, keep quite an efficient little force, properly instructed, clothed, and armed.

The drilling of the soldiers, which I witnessed just before the Shah's birthday, partook very much of the character of a theatrical performance. The drilling, which hardly ever lasted more than a couple of hours a day, was limitedto teaching the soldiers how to keep time while marching and presenting arms. The brass bands playedfortissimo—but notbenissimo—all the time, and various evolutions were gone through in the spaciousplace d'armesbefore the Italian General, in Persian employ, and a bevy of highly-dressed Persian officers. There was a great variety of ragged uniforms, and head-gears, from kolah caps to brass and tin helmets, and the soldiers' ages ranged from ten to sixty.

The soldiers seemed very good-humoured and obedient, and certainly, when I saw them later before the Shah in their new uniforms, they looked quite different and had not the wretched appearance they present in daily life.

But these infantry soldiers do not bear comparison with the Russian-drilled Persian Cossacks. The jump is enormous, and well shows what can be done with these men if method and discipline are used. Of course perfection could not be expected in such a short time, especially considering the difficulties and interference which foreign officers have to bear from the Persians, but it is certainly to be regretted that such excellent material is now practically wasted and useless.

There were several other excitements before I left Teheran. The head Mullah—a most important person—died, and the whole population of Teheran turned out to do him honour when his imposing funeral took place. Curiously enough, the entire male Jewish community marched in the funeral procession—an event unprecedented, I am told, in the annals of PersianMussulman history. The head Mullah, a man of great wisdom and justice, had, it was said, been very considerate towards the Jews and had protected them against persecution: hence this mark of respect and grief at his death.

The discovery of the ex-Minister of War's frauds, the death of the head Mullah, the reported secret attempts to poison the Shah, the prospects of a drought, the reported murder of two Russians at Resht, and other minor sources of discontent, all coming together, gave rise to fears on the part of Europeans that a revolution might take place in Teheran. But such rumours are so very frequent in all Eastern countries that generally no one attaches any importance to them until it is too late. Europeans are rather tolerated than loved in Persia, and a walk through the native streets or bazaars in Teheran is quite sufficient to convince one of the fact. Nor are the Persians to be blamed, for there is hardly a nation in Asia that has suffered more often and in a more shameful manner from European speculators and adventurers than the land of Iran.

Perhaps the country itself, or rather the people, with their vainglory and empty pomp, are particularly adapted to be victimised by impostors and are easy preys to them. Some of the tricks that have been played upon them do not lack humour. Take, for instance, the pretty farce of theCompagnie générale pour l'éclairage et le chauffage en Perse, which undertook to light the city of Teheran with no less than one thousandgas lights. Machinery was really imported at great expense from Europe for the manufacture of the gas—many of the heavier pieces of machinery are still lying on the roadside between Resht and Teheran—extensive premises were built in Teheran itself, and an elaborate doorway with a suitable inscription on it, is still to be seen; but the most important part of all—the getting of the coal from which the gas was to be extracted—had not been considered. The Lalun coal mines, which offered a gleam of hope to the shareholders, were exploited and found practically useless. The Company and Government came to loggerheads, each accusing the other of false dealing, and the result was that the Persians insisted on the Company lighting up Teheran with the agreed 1,000 lights. If gas could not be manufactured, oil lights would do. There was the signed agreement and the Company must stick to it.

The Company willingly agreed, but as the document did not specify the site where each lamp-post should be situate nearly all were erected, at a distance of only a few feet from one another—a regular forest of them—in the two main streets of the European settlement.

One single man is employed after dark to set the lamps alight, and when he has got to the end of the two streets he proceeds on his return journey to blow them all out again. By ten o'clock everything is in perfect darkness.

The Company now claim that they have fulfilled their agreement!

The Belgian Company for the manufacture of Beetroot Sugar was another example of how speculations sometimes go wrong, and no wonder. In theory the venture seemed quite sound, for the consumption of sugar in Persia is large, and if it had been possible to produce cheap sugar in the country instead of importing it from Russia, France and India, huge profits would have been probable; but here again the same mistake was made as by the gas company. The obtaining of the raw material was neglected.

The sugar refinery was built at great cost in this case, too, machinery was imported to manufacture the three qualities of sugar most favoured by the Persians—loaf sugar, crystallised sugar, and sugar-candy,—but all this was done before ascertaining whether it was possible to grow the right quality of beetroot in sufficient quantities to make the concern pay. Theoretically it was proved that it would be possible to produce local sugar at a price which, while leaving the Company a huge profit, would easily beat Russian sugar, by which French and Indian sugar have now been almost altogether supplanted.

A model farm was actually started (and is still in existence) near Shah-Abdul Azim, where beetroot was to be grown in large quantities, the experts declaring that the soil was better suited for the crop than any to be found in Europe. Somehow or other it did not answer as well as expected. Moreover, the question of providing coal for the engines proved—as in the case of theGas Company—to be another serious stumbling block. An attempt to overcome this difficulty by joining with the Gas Company in working the Lalun Mines was made, but, alas! proved an expensive failure.

Moreover, further difficulties were encountered in obtaining the right manure for the beetroots, in order that the acids, which delay crystallisation, might be eliminated; and the inexperience, carelessness and reluctance with which the natives took up the new cultivation—and, as it did not pay, eventually declined to go on with it—render it by no means strange that the sugar factory, too, which was to make the fortunes of so many became a derelict enterprise.

Cash and wealth—Capital as understood by Persians—Hidden fortunes—Forms of extravagance—Unbusiness-like qualities—Foreign examples—Shaken confidence of natives in foreigners—Greed for money—Small merchants—Illicit ways of increasing wealth—The Persian a dreamer—Unpunctuality—Time no money and no object—Hindrance to reform—Currency—Gold, silver, and copper—Absorption of silver—Drainage of silver into Transcaspia—Banknotes—The fluctuations of the Kran—How the poorer classes are affected by it—Coins old and new—Nickel coins—TheShaiand its subdivisions.

ThePersian does not understand the sound principles on which alone extensive business can be successful. Partly owing to prevailing circumstances he is under the misapprehension that hard cash is synonymous with wealth, and does not differentiate between treasure, savings, and savings transformed into capital. This is probably the main cause of the present anaemic state of business in the Shah's Empire. Thus, when we are told there is in Persia enormous "capital" to be invested, we are not correctly informed. There are "enormous accumulations of wealth" lying idle, but there is no "capital" in the true meaning of the word. These huge sums in hard cash, in jewellery, or bars of gold and silver, have beenhidden for centuries in dark cellars, and for any good they are to the country and commerce at large might as well not exist at all.

Partly owing to the covetousness of his neighbours, partly owing to a racial and not unreasonable diffidence of all around him, and to the fact that an Asiatic always feels great satisfaction in the knowledge that he has all his wealth within his own reach and protection, rich men of Persia take particular care to maintain the strictest secrecy about their possessions, and to conceal from the view of their neighbours any signs which might lead them to suspect the accumulation of any such wealth. We have already seen how even the houses of the wealthiest are purposely made humble outwardly so as to escape the notice of rapacious officials, and it is indeed difficult to distinguish from the outside between the house of a millionaire and that of a common merchant.

The Persian, it must be well understood, does not hide his accumulated treasure from avaricious reasons; on the contrary, his inclinations are rather toward extravagance than otherwise, which extravagance he can only satisfy under a mask of endless lies and subterfuges. No honest ways of employing his wealth in a business-like and safe manner are open to the rich Persian under the present public maladministration, nor have the foreign speculations in the country offered sufficient examples of success to induce natives to embark upon them again. Far from it; these enterprises have even made Persians more sceptical and close than before, and have certainly notshown foreign ways of transacting business at the best.

That is why, no other way being open to him, the Persian who does wish to get rid of his wealth, prefers to squander his money, both capital and income (the latter if he possesses land), in luxurious jewellery and carpets, and in unhealthy bribery and corruption, or in satisfying caprices which his voluptuous nature may suggest. The result? The Persian is driven to live mostly for his vanity and frivolity—two unbusiness-like qualities not tending to the promotion of commercial enterprise on a large scale, although it is true that in a small way his failings give rise and life to certain industries. For instance, even in remote, poor and small centres where food is scarce and the buildings humble, one invariably finds a goldsmith, filigree-workers and embroidery makers, whereas the necessaries of life may be more difficult to obtain.

Of course Persia contains a comparatively small number of Persians of a more adventurous nature, men who have travelled abroad and have been bitten with the Western desire for speculation to increase their money with speed, if not always with safety; but even these men have mostly retired within their shells since the colossalfiascosof the speculations started in Persia by foreign "company promoters." A considerable number of Persians, seduced by glowing prospectuses and misplaced faith in everything foreign, were dreadfully taken in by the novel experiments—everything novel attracts the Persian considerably—and readily unearthed solid gold and silver bars, that had lain for centuries in subterranean hiding-places, and now came out to be converted into shares in the various concerns, hardly worth the paper on which they were printed, but promising—according to the prospectus—to bring the happy possessors fabulous incomes.

We have seen how the Sugar Refinery, the Glass Factory, the "Gas" Company—a more appropriate name could not have been given—and the ill-fated Mining Company have created well-founded suspicion of foreign ways of increasing one's capital, nor can we with any fairness blame the Persians for returning to their old method of slow accumulation. True enough, a fortune, if discovered, has a fair possibility of being seized in the lump by a greedy official, but that is only a possibility; whereas, when invested in some foreign speculations the loss becomes a dead certainty! More even than the actual loss of the money, the Persians who burned their fingers by meddling with foreign schemes felt the scorn of their friends, of whom they had become the laughing stock.

There is no doubt that to-day the confidence of the natives towards foreigners has been very much shaken, and excepting a few men whom they well know, trust and respect, they regard most Europeans as adventurers or thieves. The "treasuring" of capital instead of the investment of it is, therefore, one of the reasons why industries in Persia seldom assume large proportions. It is only the small merchant, content to make ahumble profit, who can prosper in his own small way while more extensive concerns are distrusted.

But it must not be understood that Persians do not care for money. There is, on the contrary, hardly a race of people on the face of the earth with whom the greed for money is developed to such an abnormal extent as in all classes in the land of Iran! But, you will ask, how can money be procured or increased fast and without trouble in a country where there is no commercial enterprise, where labour is interfered with, where capital cannot have a free outlet or investment? An opening has to be found in illicit ways of procuring wealth, and the most common form adopted is the loan of money at high interest on ample security. As much as 50 per cent., 80 per cent., 100 per cent. and even more is demanded and obtained as interest on private loans, 15 per cent. being the very lowest and deemed most reasonable indeed! (This does not apply to foreign banks.) All this may seem strange in a Mussulman country, where it is against all the laws of the Koran to lend money at usury, and it is more strange still to find that the principal offenders are the Mullahs themselves, who reap large profits from such illegal financial operations.

The Persian is a dreamer by nature; he cannot be said to be absolutely lazy, for he is always absorbed in deep thought—what the thoughts are it does not do to analyse too closely—but he devotes so much time to thinking that he seldom can do anything else. His mind—like the minds of all people unaccustomed to hard work and steady, solidly-built enterprise—runs to the fantastic, and he ever expects immense returns for doing nothing. The returns, if any, and no matter how large they may be, are ever too small to satisfy his expectations.

As for time, there is no country where it is worth less than to the natives of Persia. Themañanaof the Spaniards sinks into perfect insignificance when compared with the habits of the land of Iran. Punctuality is unknown—especially in payments, for a Persian must take time to reflect over everything. He cannot be hurried. A three months' limit of credit—or even six months—seems outrageously short in the eyes of Persians. Twelve months and eighteen, twenty, or twenty-four months suit him better, but even then he is never ready to pay, unless under great pressure. He does disburse the money in the end, capital and interest, but why people should worry over time, and why it should matter whether payment occurs to-day or to-morrow are quite beyond him.

If he does transact business, days are wasted in useless talk and compliments before the subject with which he intends to deal is incidentally approached in conversation, and then more hours and days and weeks, even months have to elapse before he can make up his mind what to do. Our haste, and what we consider smartness in business, are looked upon by the Persian as quite an acute form of lunacy,—and really, when oneis thrown much in contact with such delightful placidity, almost torpor, and looks back upon one's hard race for a living and one's struggle and competition in every department, one almost begins to fancy that we are lunatics after all!

The Arrival of a Caravan of Silver at the Imperial Bank of Persia.

The Persian must have his hours for praying, his hours for ablutions, more hours for meditation, and the rest for sleep and food. Whether you hasten or not, he thinks, you will only live the number of years that God wills for you, and you will live those years in the way that He has destined for you. Each day will be no longer and no shorter, your life no sadder and no happier. Why then hurry?

Amid such philosophic views, business in European fashion does not promise to prosper.

Unable to attach a true meaning to words—his language is beautiful but its flowery form conduces to endless misunderstandings—casual to a degree in fulfilling work as he has stipulated to do it; such is the Persian of to-day. Whether the vicissitudes of his country, the fearful wars, the famines, the climate, the official oppression have made him so, or whether he has always been so, is not easy to tell, but that is how he is now.

Besides all this, each man is endowed with a maximum of ambition and conceit, each individual fully believing himself the greatest man that ever lived and absolute perfection. Moreover the influence of Mullahs is used to oppose reform and improvement, so that altogether the economic development of production, distribution and circulation of capital is bound to be hampered to no mean extent. On examining things carefully it seems almost astonishing that the trade of Persia should be as well developed as it is.

Another difficulty in the way is the currency, which offers some interesting lessons, and I am indebted to the author of a paper read before the Statistical Society for the following details.

Gold is not produced in Persia. Bar gold is imported in very small quantities only. Gold coin is a mere commodity—is quite scarce, and is mostly used for presents and hoarding. It is minted principally from Russian Imperials and Turkish pounds which drift into Persia in small quantities in the course of business. Goldsmiths, too, in their work, make use of foreign coins, although some gold and silver bullion is imported for manufacturing purposes.

Silver, too, is not obtainable in Persia except in very small quantities, and the imported silver comes from Great Britain,viathe Gulf orviaHamburg and Russia. In the year 1901 the Persian Government, in connection with the Russian Loan, imported some three million tomans' worth of silver to be minted, and the Imperial Bank of Persia another million tomans; while some 500,000 tomans more were brought into the country by other importers. But under normal circumstances the annual output hardly ever exceeds three to four million tomans. In 1900 it was something between 2,000,000 and 2,500,000 tomans.

The Mint—like all other institutions of Persia—is in a tumbling-down condition, with an ancient plant (1877) so obsolete and worn as to be almost useless. Partly owing to the insufficient production of coin, partly because of the export in great quantities of Persian silver coin into Transcaspia, and, last but not least, owing to the Persian custom of "making a corner" by speculators, the commercial centres of Persia suffer from a normal dearth of silver coins. Persian silver coin has for the foregoing reasons a purchasing power of sometimes 20 per cent. beyond its intrinsic value. In distant cities, like Yezd or Kerman, it is difficult to obtain large sums in silver coin at face value, as it disappears into the villages almost as soon as it arrives by caravan or post. New coin is generally in great demand and commands a premium.

So the yearly drain of silver coin from Teheran as soon as it is minted is very considerable, especially to the north, north-east and north-west provinces. This coin does not circulate but is almost entirely absorbed and never reappears, the people themselves holding it, as we have seen, as treasure, and huge quantities finding their way into Transcaspia and eventually into Afghanistan, where Persian coin is current and at a premium, especially on the border land.

In Transcaspia Persian coin is cherished because the nominally equivalent Persian coin contains a much larger quantity of silver than the Russian. Russian silver is a mere token of currency, or, at best, stands midway between atoken and a standard or international currency, and its difference when compared with the Persian coin amounts to no less than 21.92 per cent. in favour of the Persian. Persian coin, although defective and about 2 per cent. below legal weight and fineness, is a standard or international currency.

It appears that a good deal of the silver exported into Transcaspia finds its way to Chinese Turkestan, where it is converted into bars and ingots, and is used for the inland trade to China. The Russian Government have done all in their power to prevent the competition of Persian and Russian coins in their Transcaspian provinces. A decree was issued some eleven years ago forbidding the importation, and in 1897 a second Ukase further prohibited foreign silver from entering the country after the 13th of May (1st of May of our calendar), and a duty of about 20 per cent. was imposed on silver crossing the frontier. All this has resulted in silver entering the provinces by smuggling instead of openly, but it finds its way there in large quantities just the same as before.

The Government of Persia does not issue bank-notes, which would be regarded with suspicion among the people, but it is interesting to find that the monopoly granted to the Imperial Bank of Persia for the issue of paper money has had excellent results, in Teheran particularly, where the Bank is held in high esteem and the notes have been highly appreciated. In other cities of Persia which I visited,however, the notes did not circulate, and were only accepted at the Bank's agencies and in the bazaar by some of the larger merchants at a small discount.

Naturally, with the methods adopted by Persians, and the insecurity which prevails everywhere, the process of convincing the natives that a piece of printed paper is equivalent to so many silver krans, and that the silver krans will surely be produced in full on demand is rather a slow one; but the credit of the Imperial Bank and the popular personality of Mr. Rabino, the manager, have done much towards dispelling the suspicions, and since 1890 the notes have assumed a considerable place in the circulation. In September 1890 thecirculationof them amounted to 29,000 tomans; in 1895 it had gradually increased to 254,000 tomans, and by leaps and bounds had reached the sum of 1,058,000 in 1900.[1]It is rather curious to note that in the previous year, 1899, the note circulation was 589,000 tomans, and became very nearly double in the following twelve months.

This only applies to Teheran and the principal cities; in the villages, and in out-of-the-way towns, notes are out of the question, and even silver coins are very scarce. A two-kran piece of the newer type is seldom found, and only one-kran pieces, little irregular lumps of silver, are occasionally to be seen. Copper is really the currency and is a mere subsidiary or token coinage with a value fluctuating according tolocal dearth or other causes at almost every place one goes to.

The precarious system of farming, accompanied by the corruption of officials, has given an opportunity for most frequent and flagrant abuses in the excessive over-issue of copper coin, so that in many cities copper issued at the nominal value of 20 shais per kran was current at 30, 40, 50, and even, in Eastern Persia, at 80 shais per kran. I myself, on travelling through Persia, never knew exactly what a kran was worth, as in almost every province I received a different exchange of shais for my krans. In Birjand and Sistan, particularly, the exchange differed very considerably.

This state of maladministration affects the poorer classes, for the copper currency forms their entire fortune. On coming to the throne the present Shah, with praiseworthy thoughtfulness, endeavoured to put a stop to this cause of misery in his people, and ordered the Government to withdraw some 720,000 tomans' worth of copper coins at 25 to 30 shais per kran. This had a good effect, and although much of the depreciated coin is still in circulation, particularly in out-of-the-way places, its circulation in the larger towns has been considerably diminished.

Lately the Government has adopted the measure of supplying the public with nickel coins, one-shai and two-shai pieces, which, although looked at askance at first, are now found very handy by the natives and circulate freely, principally in Resht, Kasvin, Teheran andIsfahan. In other cities I did not see any, nor would the natives accept mine in payment, and in villages no one would have anything to do with them as they were absolutely unknown. But wherever it has been possible to commence the circulation of these nickel coins—which were struck at the Brussels Mint and which are quite pretty—they have been accepted with great pleasure.

The old gold coins in circulation in Persia—very few and far apart—were the toman, half-toman, and two-kran piece. The gold had a legal fineness of 990. The legal weight in grains troy was: toman, 53.28; half-toman, 26.64; two-kran piece, 10.656. Weight in pure gold; toman, 51.7572; half-toman, 26.3736; two-kran piece, 10.54944.

The new coins are the two-tomans, one-toman (differentiated in 1879 and subsequent to 1879), half-toman and two-kran pieces, the gold having a legal fineness of 900. Legal weight:—

Back to Index Next