All rediscount operations between the federal reserve banks are arranged by the Federal Reserve Board, under authority of Section 11 of the Federal Reserve Act, which provides that a federal reserve bank may be permitted or, upon the affirmative vote of at least five members of the Federal Reserve Board, required to rediscount the discounted paper of another federal reserve bank at rates of interest fixed by the board. There has been such a spontaneous spirit of co-operation between the federal reserve banks that all transactions suggested by the board have been voluntarily made, and in no case has the board found it necessary to exercise its statutory authority to require such operations. By means of the federal reserve leased-wire system, rediscount operations are consummated almost instantaneously, payments being made by transfers through the gold settlement fund. Practically every day of the year such transactions take place between some of the reserve banks. The transfer of funds in connection with the fiscal operations of the Treasury, and that occasioned by the seasonal requirements for handling the crops and for purchasing raw materials by industries, as well as the necessary transfer of funds for the adjustment of reserves, cause a considerable movement of bills between the various districts. The rediscount operations between the federal reserve banks for the calendar year 1920 amounted to $3,672,000,000, including $212,000,000 of purchased bills.