SERIES CORRELATED WITH DEPOSITS 197 
these positions, nor for those with different amounts of dispersion 
on either side of the average figure. It is true, however, that net 
earnings tend to be low in districts in which ratios of time deposits 
are above the country levels, and to be high in those which are 
below these levels, although these relations do not hold for all of 
the dispersion groups. Table 120, showing the association of 
the paired ratios with respect to the country levels, summarizes 
the various relations found to obtain. 
TABLE 120 
CORRELATION OF DEVIATIONS OF RATIOS IN PAIRED SERIES 
(Percentage Deviations from the Countrv’s Yearly Averages) 
a 
Pacition 
Ahave 
Relaw 
INDEPENDENT VARIABLE— Ratios of 
Time Deposits to Earning Assets 
— 
Distance from Average 
Percentage 
Groups 
Average 
Percent- 
Age 
T™tal 
Lan AR 
Ao and over. 
40 to bo... 
10t040.. 
Turia ry. s 
an! 
Number 
of 
District- 
Years 
DEPENDENT VARIABLES—Net 
Average Percentage 
_Gross 
Sarnings 
to 
Earning 
Accete 
Total 
Expense 
to 
Earning 
Accate 
Net 
Earnings 
to 
Earning 
Asseta 
I. 
-— 
ZL 
re 
(2) Ratios of Time Deposits to Total Deposits 
Total deposits of member banks, as used in this study, are 
the total of demand and of time items. Accordingly, when the 
respective amounts are expressed as percentages of the total de- 
posits, the percentages added together equal 100. Moreover, if 
in a given district for a given year, the ratio of demand deposits 
is above the district average, the ratio of time deposits is below 
this level, but not by the same percentage amount. Similarly, 
if a district ratio of demand deposits increases from year to year, 
the corresponding district ratio of time deposits decreases. In 
fact, in each of the three methods of measuring the ratios—plus 
and minus deviations from district and from yearly country levels, 
and also plus and minus changes from year to year—the signs 
for demand and for time deposits, expressed as percentages of