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 deposits,
 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