Merchants, who were reputable people in the social hierarchy of Iran, paid
much attention to charity work among the poor. Their material wealth vested
in them a huge political and social power, which they used, among other
things, in activities for the common good of the society, for example, helping
to establish new style schools with modern curriculum. A number of most
distinguished merchants had ties with the new Iranian intelegentsia and had
become acquainted with the modern way of doing business. Nevertheless,
the majority of the merchants still operated through the traditional business
networks which worked via a large number of trading houses.
Of the characteristics of commerce in the years immediately after the
end of the World War I, was the widespread use of brokerage on Iranian
merchants part on behalf of foreign commercial firms, a grave shortage of
cash, and state monopolization of trade in he Soviet Russia which led to
bankruptcy of a number of the Iranian merchants. Tax evasion and
widespread smuggling of goods into Iran were two other characteristics of
this era which flourished in the war time and widely continued afterwards.The
merchants also got involved in establishing new commercial institutions,
investingin the modem industries,land holdingand obtaining state concessions.