The gold settlement fund is part of the federal reserve scheme whereby federal reserve banks are to acquire, at least in part, the exchange facilities which have been heretofore provided by city banks for their country correspondents, and which were disturbed by the removal of the reserve balances from the city banks to the federal reserve banks. A system of transfer drafts is in operation to facilitate such payments and transfers as do not need to be made by telegraph. It enables any member bank to have its draft drawn-upon the federal reserve bank of its own district paid immediately, without time allowance or deduction, at any other federal reserve bank, adjustments between the respective federal reserve banks being made through the gold settlement fund. In this way any member bank has, under the proper and necessary restrictions provided, the same exchange facilities it would have by carrying accounts in each of the twelve federal reserve banks.