Soviet Union, in spite of the catastrophic decline of the ruble, aided
in strengthening and developing the bank, is well known, not only
to all citizens of the Soviet Union but also to the banks throughout
the world; also the methods used and the rate at which the State
Bank was able to accumulate, in the course of its commercial oper-
ations, gold and foreign exchange reserves.
“The State Bank of the U. S. S. R. is responsible only for
obligations incurred by itself. The State Bank of the U.S. S. R.
is an independent corporate body, in no manner a part of the State
Treasury Department. The State Bank does not carry any respon-
sibility for the debts of the Treasury Department.
“Similarly in the United States the State Bank assumes respon-
sibility only for its own obligations. It is strange that the Bank of
Trance, a bank of a country carrying on diplomatic relations with
the U. S. S. R,, presents in such a unique manner claims against
the U. S. S. R. which result from war-time relations between the
Czarist and the French governments and their respective central
banks. This is still more inexplicable in view of the well known fact
that the Soviet and the French governments, upon resumption of
diplomatic relations, mutually agreed to adjust all fiscal disputes
through negotiations.
“The presentation by the Bank of France of this absolutely
baseless claim may be explained only by a desire to put obstacles
in the way of developing and strengthening trade relations between
the State Bank of the U. S. S. R. and the friendly banks in other
countries,—the United States among others,—and by a desire to
hamper the issue operations of the State Bank, through the raising
of doubts as to the right of the State Bank to dispose, in its own
way, of its gold and foreign exchange funds. These calculations
are ill-advised. The State Bank will continue to support in the
future, with an even greater measure of success, I hope, the building
up and strengthening of Soviet commercial and credit operations
with foreign banks and industrial and trade organizations, on the
basis of the established correct procediire.
“The news of the action of the French Bank, supported by a
hostile note of the French Ambassador in the United States, which
was aimed at the breaking up of normal and friendly commercial
relations between the State Bank of the U. S. S. R. and foreign
banks, in particular those of the United States, and at the undermin-
ing of the issue operations of the State Bank, will arouse sentiment
among the broad masses of the Soviet Union who have made the

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