Sec. 19. Demand deposits within the meaning of this Act shall comprise all deposits payable within 30 days, and time deposits shall comprise all deposits payable after 30 days, all savings accounts and C't'fs. of deposit which are subject to not less than 30 days' notice before payment, and all postal Sav. deposits.

Every bank, B'k'g. Asso., or Tr. Co. which is or which becomes a member of any Fed. Res. bank shall establish and maintain reserve balances with its Fed. Res. bank as follows:

(a) If not in a reserve or central reserve city, as now or hereafter defined, it shall hold and maintain with the Fed. Res. bank of its Dist. an actual net balance equal to not less than 7% of the aggregate amount of its demand deposits and 3% of its time deposits.

(b) If in a reserve city, as now or hereafter defined, it shall hold and maintain with the Fed. Res. bank of its Dist. an actual net balance equal to not less than 10 % of the aggregate amount of its demand deposits and 3% of its time deposits.

(c) If in a central reserve city, as now or hereafter defined, it shall hold and maintain with the Fed. Res. bank of its Dist. an actual net balance equal to not less than 13% of the aggregate amount of its demand deposits and 3% of its time deposits.

No member bank shall keep on deposit with any State bank or Tr. Co. which is not a member bank a sum in excess of 10% of its own paid-up capital and surplus. No member bank shall act as the medium or agent of a nonmember bank in applying for or receiving discounts from a Fed. Res. bank under the provisions of this Act, except by permission of the Fed. Res. Board.

The required balance carried by a member bank with a Fed. Res. bank may, under the regulations and subject to such penalties as may be prescribed by the Fed. Res. Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make new loans or shall pay any Divs. unless and until the total balance required by law is fully restored.

In estimating the balances required by this Act, the net difference of amounts due to and from other banks shall be taken as the basis for ascertaining the deposits against which required balances with Fed. Res. banks shall be determined.

Nat. Banks, or banks organized under local laws, located in Alaska or in a dependency or insular possession or any part of the U. S. outside the continental U. S. may remain nonmember banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them; or said banks may, with the consent of the Reserve

Board, become member banks of any one of the reserve Dists., and shall, in that event, take stock, maintain reserves, and be subject to all the other provisions of this Act.

Sec. 20. So much of Secs. 2 and 3 of the Act of June 20, 1874, entitled "An Act fixing the amount of U. S. notes, providing for a redistribution of the Nat.-bank currency, and for other purposes," as provides that the fund deposited by any Nat. B'k'g. Asso. with the Treas. of the U. S. for the redemption of its notes shall be counted as a part of its lawful reserve as provided in the Act aforesaid, is hereby repealed. And from and after the passage of this Act such fund of 5% shall in no case be counted by any Nat. B'k'g. Asso. as a part of its lawful reserve.