Mr. Gresham to Mr. McDonald.

No. 11.]

Sir: I have received Mr. Sperry’s dispatch No. 60 of the 3d ultimo, diplomatic series, in relation to the order of the Persian Government for the taxation of foreign residents engaged in trade in Persia. He states that he has submitted a copy of this order to each of the American missionaries in Persia and has expressed to them the opinion that where, as in their case, drugs are handled for benevolent purposes and not for personal profit, no attempt would be made to collect the tax.

Consideration of the question would have been facilitated had Mr. Sperry reported the basis upon which native traders are taxed, and the manner in which it would affect the missionary dispensers of drugs, if applied to them. It would seem from Mr. Sperry’s statements that the gratuitous practice of medicine and supply of drugs is confined to indigent patients. If the missionary doctors receive tees from those able to pay and furnish drugs to them for a price, there will be no valid objection to their being taxed for engaging in trade to the extent of their operations.

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The question is whether the tax is scaled according to the amount of trade, or takes the form of a fixed license tax. If the latter, and it should be disproportionate to the limited feed practice of the missionaries, it is probable that the Persian Government would allow their gratuitous practice, if they should agree to confine themselves to that and abandon competition with natives who practice medicine for gain.

Awaiting such observations as you may think prudent to offer in regard to the matter,

I am, etc.,

W. Q. Gresham.