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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 possession
 or any part of the United States outside the continental
 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 nationalbank
 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 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repealed.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 five per centum shall in no case be counted
by any national banking association as a part of its lawful
 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 examiners
 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,