The purpose of this Act and the regulations made pursuant thereto was to enable the American banks to provide dollar exchange in countries where the check is not the current means of remittance in payment of foreign debts, but where the three months' banker's draft is generally used for that purpose. The banker's custom of selling three months' drafts in preference to checks originated in countries where the mail connections were irregular and the foreign exchange market was a limited one, and where it would have been difficult for him to draw in time to forward it by the same mail, whereas, in drawing the three months' draft, he would feel assured of being able to forward remittances before his obligation fell due. Such conditions do not exist between England and France and the United States. Member banks are now permitted to accept foreign drafts drawn upon them by banks or bankers in the following countries: Porto Rico, Santo Domingo, Costa Rico, Peru, Chili, Brazil, Venezuela, Argentina, Bolivia, Columbia, Ecquador, Nicarauga, Trinidad and Urugway.

It is understood in connection with the above that such drafts are to be drawn for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries.