Note 324 — Chapter XIV

How close the relation between loans and deposits is may be seen from Professor Mitchell's chart, Business Cycles, p. 344. The same chart exhibits the variations in the reserve percentage, which is very much greater. The New York Clearing House banks, which we have seen (supra, "Volume of Money and Volume of Credit") have a spread of from 24.89% to 37.59% in the yearly average of percentage of reserves to deposits—a spread of over 50%—show a variation in yearly average for the percentage of loans to deposits of only 24.3%—the range being from 83% to 104%. Ibid., pp. 325 and 331. For a partially different series of years, see the chart of J. P. Norton, Statistical Studies in the New York Money Market, facing p. 104.