Larry,
It is extremely difficult to assay a Luger without seeing it first-hand. Failing that, photographs can be crucial to the process. Your description is an observant one, and I believe carries good information.
The first question is, whay do you want a Luger, to collect and admire, or to shoot? You will find almost no commercially available ammunition in 7.65 (.30 cal.) Luger, and that will be expensive and too underpowered to operate the gun reliably.
The crown-over-N proof mark identifies the gun as a commercial weapon, as does the caliber. The 4-digit serial number with a letter suffix identifies the gun, in the parlance of collectors, as an Alphabet Commercial; the m suffix means this gun was made late 1923 or early 1924.
Alphabet Commercials are among the most common Lugers. This Luger's lack of blue reduces its value greatly. The damage to the holster reduces its value, as well.
The first question about your purpose is not an idle one, as it points a direction to search. On the basis of the Luger's exterior finish and the holster's condition as you describe them, I suspect that you can do better for $740.
--Dwight
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