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FEDERAL RESERVE ACT Secs. 20, 21 
dends unless and until the total balance required by law 
is fully restored. 
In estimating the balances required by this Act, the 
aet difference of amounts due to and from other banks 
shall be taken as the basis for ascertaining the deposits 
against which required balances with Federal reserve 
banks shall be determined. 
National banks, or banks organized under local laws, 
located in Alaska or in a dependency or insular posses- 
sion or any part of the United States outside the conti- 
nental United States 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 
districts, 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 sections two and three of the Act 
of June twentieth, eighteen hundred and seventy-four, 
antitled “An Act fixing the amount of United States 
notes, providing for a redistribution of the national- 
bank currency, and for other purposes,” as provides that 
the fund deposited by any national banking association 
with the Treasurer of the United States for the redemp- 
tion 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repealed.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 five per centum shall in no case be counted 
by any national banking association as a part of its law- 
ful reserve. 
BANK EXAMINATIONS 
wor tamended by Sec. 21. Section fifty-two hundred and forty, United 
Sn 21050 5 States Revised Statutes, is amended to read as follows: 
B10). The Comptroller of the Currency, with the approval 
of the Secretary of the Treasury, shall appoint examin- 
ers who shall examine every member bank ® at least twice 
in each calendar year and oftener if considered necessary: 
Provided, however, That the Federal Reserve Board may 
authorize examination by the State authorities to be 
accepted in the case of State banks and trust companies 
1 Except banks admitted to membership in the system under authority of sec, 9 of 
this act, See sec. 9, ante,