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JUSTICE: FINANCE] Justice.—By the theory of a Mahommedan state there should be no other courts of justice except those established for the administration of the shar’, the “divine or written law,” but in Persia there is another judicature, which is called ’urf and represents the “customary” or “known and unwritten law.” Justice, therefore, is administered by the shah and his representatives according to one law and by the clergy according to another, but the decisions of the former must not be opposed to the fundamental doctrines of Islam. The shah’s representatives for the administration of justice are the governors and other officers already mentioned. The officials charged with the administration of justice according to the shar’ are judges, called sheikh-ul-islam and kazi (kadhi, kadi or cadi of Arabs and Turks), members of the clergy appointed by the government and receiving a fixed salary, but some cities are without regular appointed judges and the title of cadi is almost obsolete; decisions according to the shar’ are given by all members of the clergy, ranging from ignorant mullahs of little villages and cantons to learned mujtahids of the great cities. If the parties to the suit are dissatisfied with the judgment, they may appeal to a priest who stands higher in public estimation, or one of the parties may induce a higher authority by bribery to quash the judgment of the first. Unfortunately, many members of the clergy are corrupt, but the mujtahids, as a rule are honest and entirely trustworthy. The functions of the representatives of the shar’ are now limited to civil cases, while all criminal cases are referred to the ’urf, which, however, also takes cognizance of civil disputes, should the parties desire it.

In criminal cases the dispensation of justice is always summary, and, when the offence is small, the whole procedure, including the examination of witnesses and criminal, as well as the decision and the punishment, a bastinado, is a matter of some minutes. For commercial cases, not paying a bill in time, bankruptcies, &c., a kind of jurisdiction is exercised by the minister of commerce, or a board of merchants, but the decisions of the minister, or those of the board, are rarely final. In Teherān the board of merchants is presided over by the malik ut tujjar, “King of Merchants,” in the provincial cities by a person called malik amin, and muin of merchants

After his second journey to Europe in 1878 Nasru’d-Dīn Shah desired to organize a police for the whole of Persia on the European system, but only a small body of police, in the capital and its immediate neighbourhood, was created in 1879. Its strength is 60 mounted policemen and 190 foot, with 11 superior and 40 subaltern officers.

There is also a “Tribunal of the Ministry for Foreign Affairs,” presided over at Teherān by an official of the foreign office, and in the Provincial cities by the karguzars, “agents,” of that department. The functions of this tribunal are to inquire into and judge differences and suits between Persian subjects and foreigners, and it is stipulated in the treaty of Turkmanchai, which is the basis of all existing treaties between Persia and other countries, that “such differences and suits shall only be examined and judgment given in the presence of the dragoman of the mission or consulate (of the foreign subject), and that, once judicially concluded, such suits shall not give cause to a second inquiry. If, however, circumstances should be of a nature to require a second inquiry, it shall not take place without previous notice given to the minister, or the chargé d’affaires, or the consul, and in this case the business shall only be proceeded with at the supreme chancery of the shah at Tabriz or Teherān, likewise in the presence of a dragoman of the mission, or of the consulate” (Article vii.).

A foreign subject implicated in a criminal suit cannot be pursued or molested in any way unless there exist full proofs of his having taken part in the crime imputed to him, and should he be duly convicted of the crime, he is handed over to his legation, which either sends him back to his own country to undergo the punishment established by law, or, according to more recent usage, punishes him in Persia by fine, imprisonment, &c. In this respect the powers of the foreign representatives in Persia, now numbering ten (Great Britain, Russia, France, Turkey, Austria-Hungary, Germany, United States of America, Italy, Belgium and the Netherlands) vary considerably, some having the power of condemning a criminal to death, while others cannot do more than fine and imprison for short periods. Suits, civil and criminal, between foreign subjects are altogether out of Persian jurisdiction, and are judged by the representatives of the foreign powers accredited to Persia.

In 1889, after Nasru ’d-Dīn Shah’s return from his third visit to Europe, the council of state was instructed to compile a code of law for the regulation of justice. A beginning was made by ordering the translation of the Code Napoléon, the Indian Mahommedan code, and the Code Napoléon as modified for Algeria; but nothing further was done.

Finance.—The fixed revenues of Persia are derived from (1) regular taxation (maliat) composed of taxes on lands, flocks, herds, shopkeepers, artisans and trade; (2) revenues from Crown lands; (3) customs; (4) rents and leases of state monopolies. There is also a kind of irregular revenue derived from public requisitions, presents, fines, confiscations, &c, nowadays not producing much. The land tax, which varies according to localities, is paid in money

and kind, and should amount on an average to about 25% of the yield of the soil. The taxation on flocks and herds exists either as a supplementary method of land taxation, or as a contribution of a certain sum per animal, and the tax on shopkeepers, artisans and trades sometimes takes the form of a poll-tax, sometimes that of an impost on the profits of the trades. The revenue from Crown lands consists of a certain proportion of the produce, and also varies much according to localities. Until March 1899 all the customs were farmed out, but since then they have been organized on European principles, with the help of Belgian officials. By treaties with Russia and Great Britain, concluded in 1901 and 1903 respectively, the 5% duty fixed by the Turkmanchai treaty was abolished, and an equitable tariff was established. The revenues from rents and leases of state monopolies are derived from posts, telegraphs, mines, mint, forests, banks, fisheries, factories, &c., and amount to about £110,000 per annum.

The total revenue of Persia, from all sources, amounted in 1876 to 58,700,000 krans, in 1884 to 50,800,000, in 1890 to 60,000,000; and in 1907–1908 to about 80,000,000 krans. This would seem to show a steady increase, but when we consider that the value of the kran in 1876 was nearly 8 d., and has fallen in consequence of the great depreciation of silver to only 4 d., the total revenue really decreased from £1,950,000 in 1876 to £1,600,000 in 1907–1908. Out of the actual total revenue £500,000 is represented by customs and £110,000 by rents and leases of state monopolies, leaving £990,000 for maliat and revenues of Crown lands. In 1876 the two latter items amounted to about £1,600,000, while the two former were only £350,000 instead of £610,000 in 1907–1908. While the prices in krans of agricultural produce, and hence the profits of the landowners and the wages and profits of artisans and tradesmen, were in 1907–1908 more than double what they were in 1876, the maliat, the backbone of the revenue, has hardly increased at all, being 50,000,000 krans (£1,000,000) against 43,200,000 krans (£1,600,000) in 1876, and showing a decrease of over 37% in sterling money. A new assessment of the maliat, based upon the present value of the produce of lands and actual profits of artisans and tradesmen, has frequently been spoken of, and government, aided by a strong minister of the interior and an able minister of finance, ought to have no difficulty in raising the maliat to its proper level and the total revenues of the country to about two millions sterling.

Until 1888 the yearly expenditure was less than the yearly income, but subsequently the revenues were not sufficient to cover the expenditure, and many payments fell in arrear in spite of emptying the treasury of its reserve and contracting numerous loans.

In May 1892 the Persian government concluded a contract with the Imperial Bank of Persia, established by British royal charter in 1889, for a loan of £500,000 at 6%, repayable in the course of forty years, and guaranteed by the customs of Fars and the Persian Gulf ports. The produce of this loan served for the payment of an indemnity to the Imperial Tobacco Corporation, which began in 1890 and had to cease its operations in January 1892. In January 1900 the Persian government, in order to pay the arrears and start afresh with a clear balance-sheet, contracted a loan through the Banque des Prêts de Perse, a Russian institution connected with the Russian state bank, and established in 1890. This loan was for 22½ million roubles (£2,400,000) at 5% interest, guaranteed by all the Persian customs with the exception of those of Fars and the Persian Gulf ports, and repayable in the course of seventy-five years. In the contract, which was signed at St Petersburg at the end of January 1900, the Persian government undertook to redeem all its former foreign obligations (the 1892 loan) out of the proceeds of the new loan, and not to contract any other foreign loan before the redemption of the new loan without the consent of the Russian bank. The loan was at 86⅔, less 1⅔ for commission and charges, the Persian government thus receiving 85% of the nominal capital, or £2,040,000. The bonds enjoy the full guarantee of the Russian government. The yearly charge for interest and amortization, about £124,000, is to be paid in two half-yearly instalments, and in the event of default the Russian bank will have the right to exercise effective control of the customs with a maximum number of twenty-five European employés. When the contract for the new loan was concluded, the liabilities of the Persian government for the balance of the 1892 loan (about £435,000), temporary loans from various banks, arrears of pays and salaries, and other debts, amounted to over £1,500,000, so that not much margin was left. The shah’s visit to Europe in the same year cost the exchequer about £180,000. In March 1902 the Russian bank agreed to grant a further loan of 10 million roubles on the same conditions as those of the first loan, and the whole amount was paid by the end of the year, but another visit of the shah to Europe and reckless expenditure at home made the position worse than before. After November 1903 the expenditure was reduced, and the new customs tariff which came into force on the 14th of February 1903 increased the revenue by nearly £200,000 per annum; it was thought that the expenditure would not exceed the receipts, even if the shah undertook a third voyage in Europe (which he did in 1905). However, in November 1907, when the national assembly or council demanded a budget and made inquiries as to the financial position, it was found that the expenditure for