During the time the bank loan remains outstanding the quantity of money in the system differs between the fractional reserve banking system and the 100% reserve banking system. In the main presentation I showed these differences separately. You might find it interesting to see these differences in an "A-B" comparison, in which you can switch back and forth from one model to the other and back again.

On the next two page I have provided just such a comparison.

Grower Gains

The effect on money balances when the grower pays his loan.

Grower Loses

The effect on money balances when the grower does not pay his loan.