In England this failure seems to have been ascribed to Russian intrigue, but it must in all fairness be said that had the Russians tried a similar scheme in a similar manner, they would have fared even worse than we did. Even Persian concerns established on European principles have serious troubles to contend with; but it was madness to believe that an entire Eastern nation could, at a moment's notice, be forced to accept—in a way most offensive to them—such an article of primary use as tobacco, which, furthermore, was offered at a higher price than their own tobaccos which they liked better.

There are in Persia a few important European commercial houses, such as Ziegler and Co., and Hotz and Son, which have extensive dealings with Persians. Ziegler and Co. deal in English imports and in the exportation of carpets, etc., whereas Hotz and Son import Russian articles, which they find cheaper and of easier sale. Both are eminently respectable firms, and enjoy the esteem of everybody.

Notwithstanding the Swiss name, Ziegler and Co. is an English firm, although, as far as I know, it has not a single English employee in its various branches in Persia. The reason, as we have seen, is that foreigners are considered more capable. It has in the various cities some very able Swiss agents, who work most sensibly and excellently, and who certainly manage to make the best of whatever business there is to be done in the country. For over thirty years the house has been established in Persia, having begun its life at Tabriz and then extended to Teheran, Resht, Meshed, Isfahan, Yezd—the latter so far a non-important branch—and Shiraz, Bushire, Bandar Abbas and Bagdad, where it has correspondents working for the firm.

The house imports large quantities of Manchester goods and exports chiefly carpets, cloths, opium and dried fruit. The carpets, which are specially made for the European market, are manufactured chiefly at Sultanabad where thousands of hands are employed at the looms, scattered about in private houses of the people and not in a large factory. The firm takes special care to furnish good wool and cottons coloured with vegetable dyes, and not with aniline. Ancient patterns are selected and copied in preference to new designs. Of course, besides these, other carpets are purchased in other parts of the country. Carpets may be divided into three classes. The scarce and most expensive pure silk rugs; the lamsavieh or good quality carpets, and the mojodeh or cheaper kind. There is a good demand for the two latter qualities all over Europe and in America.

Articles specially dealt in are the cotton and wool fabrics called ghilim, the designs of which are most artistic; and to a certain extent other fabrics, such as the vividly coloured Kashan velvets, the watered silks of Resht, the Kerman cloths resembling those of Cashmir, the silver and gold embroidered brocades of Yezd, and the silk handkerchiefs manufactured in the various silk districts, principally Tabriz, Resht, Kashan and Yezd.

The stamped and hand-drawn kalamkars in stringent colours upon white cotton also find their way in large quantities to Europe, but are more quaint than beautiful. Large and ill-proportioned figures are frequently attempted in these designs. When of truly Persian manufacture the colours are said to be quite permanent under the action of both light and water.

The firm of Hotz and Son deals in well-nigh everything, and has made good headway of late years. It has large establishments at Isfahan, Shiraz and Bushire, and two agencies, one at Ahwaz on the Karun River, and one in Teheran (Groeneweg, Dunlop, and Co.); while it has correspondents in Bagdad, Busrah, Hongkong and Rotterdam, the head offices being in London. Its carpet manufacturing business in Sultanabad is now carried on by the Persian Manufacturing Co. The exports are similar to those of Ziegler and Co.

There are also smaller firms, particularly in Teheran, such as the Toko, Virion, and others who do a retail business in piece goods and articles of any kind, and are entirely in the hands of foreigners, Belgians, Austrians, and French. Without reference to statistics, which are absolutely worthless in a country like Persia, the yearly foreign trade of Persia, divided between the Gulf ports and the north and north-western and south-western frontiers, may be put down roughly at some nine or ten millions sterling.

The Russian trade in the north may be considered as about equal to the British in the south. Then there are the goods brought by the Trebizonde-Tabriz trade route from Turkey and the Mediterranean, and by the Bagdad-Kermanshah, another very important route.

The extravagant system of farming prevailing until quite lately in Persia, as well as the uncertainties of Customs and revenue returns, makes it difficult to give trustworthy figures; but in future, probably this year, we may expect some more reliable data from the new Belgian customs office, a really sensible and well-managed administration organised by Monsieur Naus, who is, indeed, to be congratulated on the success with which his efforts at bringing about so radical a reform in the system of collecting duties have in so short a time been crowned. We often hear in England that the Customs of Persia are absolutely in the hands of Russia, and are worked by Russian officials. Even serious papers like The Times publish misleading statements of this kind, but nothing could be more erroneous. M. Naus, at the head of the Customs, is a Belgian, and so are nearly all the foreign employees (there are one or two French, I believe) in Persian employ, but not a single Russian is to be found among their number. That the Russians hold a comparatively trifling mortgage on the Customs as a security for their loan is true, but, as long as Persia is able to pay interest on it, Russia has no more power over the Persian Customs than we have. Under regular and honest management, like the present, the Customs have already given considerable results, and were it not for the weakness of the Government in the provinces, the Customs receipts might easily be doubled, even without a change in the tariff.