SERIES CORRELATED WITH EARNING ASSETS 165 
TABLE 100 
CORRELATION OF DEVIATIONS OF RATIOS IN PAIRED SERIES 
(Percentage Deviations from the Country’s Yearly Averages) 
INDEPENDENT VARIABLE—RAatios of 
Loans and Discounts to Earning Assets 
Distance from Average 
Averag c 
Percent- 
age 
Position 
Tt al 
rr A ga 
Above 
ro and over 
jtoro.. 
Mader = 
So iY, 
a. 
Relow 
1S 
pe 
Total 
Number 
of 
District. 
Years 
iw 
DEPENDENT VARIABLES—Net 
Average Percentage 
A... — 
Gross 
Earnings 
to 
Earning 
Assets 
Total 
Expense 
to 
Earning 
Assets 
Net 
Earnings 
to 
Earning 
Assets 
f. ® mm 
"om 
€ 
- 
J == 
| 
- 
i; 
-7f 
Are. 50 
- 3.475 
-— 0. IS 
+ 5.44 
are above, and net earnings below, the country level; (2) when 
loans and discounts are below, gross earnings and operating 
expenses are below, and net earnings above, the country level. 
These are the net results in the three series for all ratios of loans 
and discounts to earning assets which were, respectively, above 
or below the level for the combined districts. They do not, 
however, hold in every case when the ratios of loans and dis- 
counts are classified by amounts and direction of deviation. In 
general, however, the greater the deviations in loans and dis- 
counts, the greater the net deviations—direct or inverse—in the 
other series. 
Having expressed in three different ways the relations between 
loans and discounts in terms of earning assets, and other series 
suitably measured, deviations and year-to-year changes in each 
of the series being paired with corresponding deviations and 
year-to-year changes in loans and discounts, and having found, 
according to the different methods, evidence of both direct and 
inverse relations, a synthesis of the results is required. This 
can take the form of a summary showing the like or unlike 
behavior of the respective series, when paired with loans and dis- 
counts, as indicated by the three methods, paired variations from 
district ratios and paired year-to-year changes applying to all 
the series, and paired deviations from country averages applying 
to series of gross earnings, net earnings, and total expense.