SERIES CORRELATED WITH DEPOSITS 175 
2. SERIES CORRELATED WITH RATIOS OF DEMAND DEPOSITS 
(1) Ratios of Demand Deposits to Earning Assets 
Table 106 gives, for gross earnings, total expense and net 
earnings, and so on, the net percentage differences of the ratios 
for the respective series from their own seven-year district levels, 
corresponding to the nature and percentage amounts of disper- 
sion of demand deposits in terms of earning assets. It shows, 
among other things, that (1) on the whole, when demand deposits, 
as measured, were above their district levels, gross earnings and 
total expense were below and net earnings were above their 
respective district levels; (2) when demand deposits were below 
such positions, gross earnings and total expense were generally 
above and net earnings generally below their corresponding aver- 
age levels; and (3) the greater the deviations of demand deposits, 
the greater are the net deviations, direct or inverse, in the paired 
series. That is, districts having relatively high demand deposits 
had high net earnings and low gross earnings and total expense; 
and those having low demand deposits had low net earnings and 
high gross earnings and total expense—all amounts being 
expressed in terms of earning assets. 
There are, of course, conditions other than variable amounts 
of demand deposits which determine those of gross and net 
earnings and total expense. If the percentage amounts by which 
the ratios for each of these series deviate from their seven-year 
district level are determined (account being taken of the paired 
positions of demand deposits and of loans and discounts, each 
expressed in terms of earnings assets), it is found, as summarized 
in Table 107, that (1) high demand deposits and low loans and 
discounts are associated with the lowest gross earnings and total 
expense; (2) low demand deposits and high loans and discounts 
accompany the highest gross earnings, total expense and net 
earnings; and (3) variations in the amounts of loans and dis- 
counts seem to have more influence than variations in amounts of 
demand deposits on ratios of net earnings, the lowest ratios 
occurring, however, when both demand deposits and loans and 
discounts relative to earning assets are below their respective 
district levels. 
But the ratios of demand deposits, as of other series, change