The Federal Reserve Act of 1913 distinguished between time deposits and demand deposits. The reserves required against time deposits in all banks were put at 5 per cent, those against demand deposits in country banks at 12 per cent, in reserve city-banks at 15 per cent, and in central reserve city banks at 18 per cent. These amounted to very substantial reductions of reserves, especially against time deposits. The act also provided for a gradual transfer of part of the reserves to the federal reserve banks; the central reserve city banks were to transfer directly 7/18 of their reserves to the federal reserve bank and to carry 6/18 in their own vaults; the other 5/18 might be carried either in their own vaults or in the federal reserve bank. The reserve city banks were, by semiannual payments extending over three years, to transfer reserve money to the federal reserve banks until their reserves were distributed in the proportion of 5/15 in their own vaults, 6/15 in the federal reserve banks, and the remaining 4/15 in either. The country banks by a like process were, after three years, to have their reserves distributed in the proportion of 4/12 in their own vaults, 5/12 in the federal reserve banks, and 3/12 in either. The act therefore purposed to remove the reserve balances formerly carried in reserve city and central reserve city banks and have all the reserves lodged in the banks' own vaults or in the federal reserve banks. If balances were then any longer carried with correspondents in the reserve cities they could not be counted as reserves. These transfers were to be completed by November 16, 1917.