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Financial Situation, continued from page 58system, must, under heavy penalty, be returnedat once for redemption to the original bank ofissue. To redeem them, an equivalentamount of gold in the FederalIs It "an" InflationMarket" ?Reserve is transferred from the accountof the bank taking up the notesto the account of the bank presenting them. Thegold reserve, held for such a purpose by thetwelve Reserve Banks combined, was 64^ percentof their total outstanding notes, as against a ratioof 16 per cent of gold holdings to outstandingnotes at the issuing Bank of France, and lessthan 6 per cent at the Bank of Germany.It should, then, be reasonably clear that ourcurrency is not depreciated, and, therefore, thatprices in our markets have not been raised by anysuch influence as measurement in paper which isnot worth its face in gold. That such a conditionactually exists with continental Europe's currenciesnobody nowadays pretends to doubt.Waiving entirely the argument from the depreciationin exchange rates, we have the testimonyof prices themselves. Russia is naturally theextreme test, since her government's issue ofpaper currency has been absolutely reckless, anda few weeks ago, with the ruble's normal valueslightly more than half a dollar, an official Russianjournal reported bread as selling at Moscowfor 20 to 30 rubles a pound, eggs at 7 rublesapiece, butter at 100 rubles a pound, milk at 8 toFinancial Situation, continued on page 62What a Check TellsThe customers of the National Bank ofCommerce in New York are among theleaders of industry.Our credit is extended to concerns ablyand successfully managed, whose financialhistory is clean.A check drawn on the National Bank ofCommerce in New York tells of leadership,sound policies, financial integrity andsuccess.NATIONAL BANK OF COMMERCEIN NEW YORKCapital Surplus & Undivided Profits Over Fifty Million Dollars60