NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
exchange, and thirty-year three per centum gold bonds without the circulation privilege 
for the remainder of the two per centum bonds so tendered: Provided, That at the time 
of such exchange the Federal reserve bank obtaining such one-year gold notes shall 
enter into an obligation with the Secretary of the Treasury binding itself to purchase 
from the United States for gold at the maturity of such one-year notes, an amount 
equal to those delivered in exchange for such bonds, if so requested by the Secretary, 
and at each maturity of one-year notes so purchased by such Federal reserve bank, to 
purchase from the United States such an amount of one-year notes as the Secretary, 
may tender to such bank, not to exceed the amount issued to such bank in the first 
instance, in exchange for the two per centum United States gold bonds; said obligation 
to purchase at maturity such notes shall continue in force for a period not to exceed 
thirty years. 
For the purpose of making the exchange herein provided for, the Secretaty of the 
Treasury is authorized to issue at par Treasury notes in coupon or registered form as 
he may prescribe in denominations of one hundred dollars, or any multiple thereof, 
bearing interest at the rate of three per centum per annum, payable quarterly, such 
Treasury .notes to be payable not more than one year from the date of their issue in 
gold coin of the present standard value, and to be exempt as to principal and interest 
from the payment of all taxes and duties of the United States except as provided by 
this Act, as well as from taxes in any form by or under State, municipal, or local 
authorities. And for the same purpose, the Secretary is authorized and empowered 
to issue United States gold bonds at par, bearing three per centum interest payable 
thirty years from date of issue, such bonds to be of the same general tenor and effect 
and to be issued under the same general terms and conditions as the United States 
three per centum bonds without the circulation privilege now issued and outstanding. 
Upon application of any Federal reserve bank, approved by the Federal Reserve 
Board, the Secretary may issue at par such three per centum bonds in exchange for the 
one-year gold notes herein provided for. 
Bank Reserves 
As amended by act approved Aug. 15, 191} (38 Stat., 691, chap. 252(; act approved 
June 21, 1917 (40 Stat., 232, chap. 32); act approved Sept. 26, 1918 (40 stat., 967, 
chap. 177). 
Sec. 19. Demand deposits within the meaning of this Act shall comprise all deposits 
payable within thirty days, and time deposits shall comprise all deposits payable after 
thirty days, all savings accounts and certificates of deposit which are subject to not 
less than thirty days’ notice before payment, and all postal savings deposits.! 
Every bank, banking association, or trust company which is or which becomes a 
member of any Federal reserve bank shall establish and maintain reserve balances 
with its Federal reserve 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 Federal reserve bank of its district an actual net balance 
Deposits of public moneys by the United States, other than postal savings deposits, are not 
wubject to reserve requirements. See sec. 7 of First Liberty Bond Act, approved Apr. 24, 1917 
Appendix, p. 69; sec. 8 of Second Liberty Bond Act, approved Sept. 24, 1917. and sec. 8 of Third 
Liberty Bond Act, approved Apr. 4, 1918,. 
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