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
Percentage
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 discounts
are classified by amounts and direction of deviation. In
general, however, the greater the deviations in loans and discounts,
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 discounts,
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.
