Persian Empire 1845

Chapter 97 Finance of 1848

Throughout 1848, Iran's fiscal revenue successfully exceeded 1800 million rials, reaching 1823 million.

The main drivers of growth were increased tariffs and higher monopoly revenues, resulting in increased trade in both exports and imports. Iran's exports last year totaled 1256 million rials, while imports reached 1683 million.

Among them, exports of raw silk increased by 20% compared to the previous year, carpets by 15%, other textiles by 14%, dried fruits such as pistachios and walnuts and fruits by 30%, and grape juice by three times. This is because many people have a good impression of Iranian grape juice, and the Italian peninsula, the main producer of grape juice in Europe, is in turmoil, so Iran has benefited from this.

In terms of trading partners, Iran's exports to Central Asia increased by 25%. Five countries, including Herat and Kabul, export agricultural products such as cotton to Iran and import textiles and other manufactured goods. Some of these are produced domestically in Iran, while others are imported from Britain and France and then resold to them.

Trade with the Ottomans also increased, with Mesopotamia and Anatolia being Iran's main trading partners. Textiles were the Ottomans' largest import, but trade remained relatively normal at this time due to the lack of low tariffs.

The fastest-growing sector is likely the tribal trade across the Persian Gulf. Last year alone, Iran exported goods worth 100,000 rials to them, ten times the amount of the previous year. Dhahran and Bahrain have become important trading ports, and Iran is influencing these Shia communities through a steady stream of exports.

On the import side, the main imports were machinery and some industrial products. Among them, imports from the UK and Prussia grew the fastest. Iran needs textiles, mining, steel machinery and shipbuilding equipment from the UK, and mining machinery from Prussia.

In addition, there are imports of raw materials from Russia and India. The booming foreign trade has gradually increased Iran's income, although it still does not have tariff autonomy.

As for monopolies, it's much simpler, including the monopolies on important resources such as salt and tobacco. These things are naturally controlled by the government, which then generates revenue from them.

However, in terms of spending, Iran has also reached 2031 million riyals. The deficit is half of what it was before, but it still exists.

The bulk of this came from 450 million rials for training the army, 400 million rials for laying railways, telegraph lines, and improving ports, 340 million rials for investing in industry, and 180 million rials for agriculture. The rest was for daily expenses.

The Tabriz Arms Factory and the newly built Tehran Arms Factory are the only two factories in Iran capable of producing modern weapons. Currently, the factory is producing Iran's first self-developed rifle, based on a bullet prototype designed by Nasser al-Din in Tabriz. The rifle weighs 4.8 kg, has a 17.8 mm caliber, a kill range of up to 918 meters, and can guarantee accurate hits within 550 meters.

Meanwhile, Tabriz also produces artillery shells and bullets, while Tehran produces small parts such as pistols and rifles, as well as gunpowder. The Tabriz military factory is probably Iran's most successful factory. Since its establishment in 1844, it can produce more than 1 artillery shells of various sizes per month, and seven or eight small cannons per month. These are highly regarded by the military.

With the military factory at its core, Tabriz established another steel plant, using locally produced coal and iron to produce pig iron and steel. The finished products were then sent to the military factory and the railway bureau as raw materials, and these two uses kept the steel plant profitable.

Regarding railways, the Tehran-Tabriz railway is one-third complete. Other railways are under construction, and the railway from Tehran to Bandar Abbas is also on the agenda. Therefore, three-quarters of the transportation funds have been invested in railways. However, the railways at best connect major cities and ports; vast rural areas are still dirt roads, and having a paved road is considered a blessing.

After the Qajar dynasty was established, it restored some of the damaged road system, but this was negligible given the size of its territory. Most areas still had dirt roads, which became muddy and difficult to traverse in rainy weather. Moreover, due to the lack of effective urban planning and maintenance, the streets were old and dilapidated, causing great inconvenience to people's travel.

Therefore, the construction of highways was put on the agenda, a method learned from Britain. Road surfaces made by compacting rolled stones using the principle of interlocking are more durable and less muddy than dirt roads.

Although industrialization has begun, agriculture remains Iran's most important economic activity. Therefore, Iran has allocated funds to build agricultural facilities and invest in agricultural technology to increase yields, and farmers who have gained land and freedom have begun to choose to cultivate cash crops.

Cotton and cocoa were planted in Mazandran, coffee trees in Abadan, and potatoes in places where wheat could not be grown. According to the above, these are also edible, and the ingredients are quite versatile.

New crops have transformed Iran's agricultural structure and increased farmers' incomes. Following land reforms, landowners were forced to adopt more advanced facilities to increase land productivity, while also investing their funds in factories or depositing them in banks, which greatly benefited Iran's economy.

This applied not only to landowners but also to the tribes. Forced settlement compelled them to find alternative ways to earn money, such as raising cattle and sheep to supply the market with meat and wool. Part of this was used to meet the needs of the populace, and the other part was exported.

In foreign policy, Iran made its first-ever foreign loan: the ruler of Khiva borrowed 20 rials from Iranian banks, using their industrial and commercial taxes as collateral. This was also a step forward for Iran, indicating that they were beginning to use economic means to control and annex other countries.

Iranian merchants are also active in Central Asia, even more so than Russian merchants. Of course, there aren't many Russians here; they are mainly active in the northern Kazakh region.

Russia actively promoted the spread of Slavic culture in the Kazakh region, while encouraging Russians to migrate to the vicinity of Lake Balkhash to strengthen its control over the Kazakhs. Iran, feeling the effects of Russian encroachment, also desperately sought to exert influence in Central Asia. Besides economic means, missionary groups, primarily composed of Shia clerics, attempted religious conquest. They established hospitals and other charitable facilities, spread Shia Islam, and actively courted local imams, promising them various incentives to align themselves with their cause.

For those who remained unmoved, threats were added, telling them that Russia, this infidel, would soon conquer them, destroy everything, and force them to convert. Since Tsarist Russia's reputation had already spread throughout the land, they had no choice but to believe. After all, relying on their rulers was useless; perhaps relying on Iran could at least preserve their faith and property.

　I apologize again for yesterday's situation. It caused many misunderstandings and hurt many feelings. I, the author, swear that such a situation will not happen again, and I ask all readers to keep an eye on me.

　　Above, by the author Kalmar Union.

　　
　
(End of this chapter)