The reserves of a member bank now consist wholly of balances with the federal reserve bank. The board has made a steady campaign in the case of both notes and deposits, to concentrate the gold holdings of the system. Laws have been passed by different states permitting their institutions to carry their reserves with the federal reserve banks, and balances are also carried by them with these banks for exchange purposes. Patriotic motives have also favored such concentration. The result is that the board has control of the greater part of the gold of the country. As shown in the statement of the resources of the federal reserve system (page 275) the total reserves carried in cash form equal at least two-thirds of the earning assets. If the federal reserve banks invested a large fraction of these reserves that action would dissipate them again, and the investments could not be considered the equal of cash in the vaults.