SERIES CORRELATED WITH DEPOSITS 187 
ings and demand deposits and total expense seem to be inde- 
pendent of the units in which deposits are expressed and of the 
types of details which are correlated. 
The general direction of year-to-year changes, between 1919 
and 1925, of ratios of demand deposits to total deposits was 
downward, district by district, this fact already having been 
noticed in Chapter IV. Of the 72 changes for all districts, 65 
were downward, and for districts with ratios moving in this direc- 
tion, the corresponding net direction of change in ratios of gross 
earnings, total expense, salaries and wages, of interest on de- 
posits, and of “other expense,” was upward; for ratios of net 
earnings and of interest on borrowed money, it was downward, 
the relations in each of the paired series being identical with those 
found to obtain when the net deviations from district levels for 
these series were determined for districts having ratios of demand 
deposits to total deposits below their respective district levels.’ 
But what is the net direction of change from year to year for 
the three series, gross earnings, total expense, and net earnings 
for districts with ratios of demand deposits to total deposits and 
of loans and discounts to earning assets, respectively, increasing 
or decreasing, account being taken of the nature of the changes 
simultaneously? The results of such an analysis are found in 
Table 114. Because of the fact that demand deposits relative 
to total deposits generally decreased from year to year, the lower 
section of the table, containing the bulk of the instances, is the 
part which is significant. In this group of districts, ratios of 
gross earnings and of total expense increase and those of net 
earnings decrease. For the districts which have decreasing ratios 
of demand deposits to total deposits and at the same time increas- 
ing ratios of loans and discounts to earning assets, however, the 
rates of increase in gross earnings and in total expense are greatly 
accelerated, and the decrease in net earnings is changed into an 
increase. Moreover, when ratios both of demand deposits and 
of loans and discounts decrease, the net results are decreases in 
all three series, the largest percentage amount applying to net 
earnings. 
Ratios of demand deposits to total deposits in each district 
may be measured with respect to the level for the country as a 
whole, the differences being expressed by signs and percentage 
“ESee Table 111, page 182.