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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