In a recent article in this Journal, M. F. J. Prachowny (1970) offers a revised specification of the interest parity condition; he introduces a spread between borrowing and lending interest rates and assumes an upward-sloping supply of funds. These assumptions imply the existence of a neutral band around the traditional interest parity line-in which no additional arbitrage is profitable; thus, points which are off the traditional line can still be interpreted as being equilibrium points. Section I of the present paper reconstructs the conditions for the existence of the neutral band. Section II estimates the size of the neutral band and the implied elasticities of the supply and demand for funds and then raises the more fundamental question regarding the appropriateness of applying the "elasticity approach" to the interest parity theory. Section III contains some concluding remarks.