e
East.

The other important bank in Persia upon which great hopes are built,
although worked on different lines, is the so-called Russian Bank, the
_Societe de Prets de Perse_, as it was at first called when founded by
Poliakoff in 1891. It was an experiment intended to discover exactly what
was wanted in the country and what was the best way to attract business.
The monopoly of Public Auctions was obtained in conjunction with the
Mont-de-Piete--a scheme which did not work very well at first, the
natives not being accustomed to sudden innovations. The concern
subsequently developed into the _Bank Estekrasi_ (Bank of Loans), or
_Banque de Prets de Perse_, as it styled itself, but financially it did
not pay, and at one moment was expected to liquidate. It is said that it
then threatened to amalgamate with the Imperial Bank. Mr. De Witte, of
St. Petersburg fame, was consulted in the matter, and took exactly
twenty-four hours to make up his mind on what was the best course to
pursue. He bought the bank up, the State Bank of St. Petersburg making an
advance on the shares. The Minister of Finance has a right to name all
the officials in the bank, who, for appearance sake, are not necessarily
all of Russian nationality, and the business is transacted on the same
lines as at the State Bank of St. Petersburg.

A most efficient man was sent out as manager; Mr. Grube, a gentleman of
much tact and most attractive manner, and like Mr. Rabino--a genius in
his way at finance; a man with a thorough knowledge of the natives and
their ways. In the short time he has been in Teheran the bank has made
enormous strides, by mere sound, business capability and manly,
straightforward enterprise.

Mr. Grube has, I think, the advantage of the manager of the Imperial Bank
in the fact that, when the Russians know they have a good man at the
helm, they let him steer his ship without interference. He is given
absolute power to do what he thinks right, and is in no way hampered by
shareholders at home. This freedom naturally gives him a very notable
advantage over the Imperial Bank, which always has to wait for
instructions from London.

Mr. Grube, with whom I had a long and most interesting conversation,
told me how he spends his days in the bazaar branch of his bank, where he
studies the ways and future possibilities of the country and its natives,
and the best ways of transacting business compatible with European
principles, and in particular