Syria: An Economic Survey 



900,000 francs, besides which it had loaned about 620,000 francs 

 in short-term credits to 52 loan associations with about 2,300 

 members. Since the beginning of the war the activities of the 

 bank have been suspended. 



The Banque Commerciale de Palestine does regular banking 

 business in Jerusalem, and recently has engaged in loaning money 

 to farmers on a small scale. 



The Deutsche Palastina-Bank became affiliated with the syndi- 

 cate of the Dukes Hohenlohe and Fuerstenburg about ten years 

 ago, when its capital was increased to 20,000,000 marks. Before 

 the war the bank was to be separated from the ducal combination 

 and administered by the Deutsche Orientbank, but at present it is 

 still working under the syndicate. 



The banking business done by private firms is not of great 

 moment. In Aleppo, however, there are eight or ten bankers who 

 do regular business, and 25 smaller bankers who discount second 

 class bills of exchange refused by the larger banks, at an enormous 

 rate of interest, far above the legal 9 per cent. 



The volume of investment securities in Syria is very limited 

 and the business done in them is confined chiefly to the purchase of 

 such paper for the investment of savings. The mortgage bonds of 

 the Credit Foncier Egyptien are the most important, paying only 

 3 per cent interest, but having the attractions of lottery features. 

 They are issued in denominations of 250 francs. Besides, Turkish 

 and several French premium bonds are bought. Speculation in 

 securities is practically non-existent. 



The credit system is carried on by means of discounting bills 

 or advances made on current account. Usually the paper runs for 

 no more than 3 months. In many cases the discounted bill is not 

 really commercial but rather a promissory note, the signature of 

 the drawer serving as a guarantee. 



As in Europe, the customer's notes of the borrower are as- 

 signed to the bank as collateral for loans on current accounts. 

 Personal guarantees, and also pledges and mortgages, are some- 

 times taken as security. 



The volume of commercial paper in Syria is estimated at 

 10,000,000 Itq. per annum. This shows how little developed the 

 whole banking system is. 



In 1010 the Beirut banks under the leadership of the Ottoman 

 Bank agreed upon the following rates of discount for notes: 

 for bankers of the first class, 

 for bankers of the second class. 

 1% for business men of the first class. 

 7-8% for other business men. 



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