INTERPRETATION
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But
District bank resources* tend to fluctuate with district bank debits;
District bank debits tend to fluctuate with district business conditions;
District banking resources tend to fluctuate with district business
~onditions.
In summary, then, it may be said that if bank debits tend to
Auctuate with general business conditions, and if bank debits by
districts tend to fluctuate together, then general business by districts
tends to move together. But district banking resources
tend also to move sympathetically with district bank debits.
Hence, banking resources by districts tend to oscillate with business
conditions, and these oscillations are much the same from
year to year over the period covered, in all of the various districts.
Evidences of tendencies toward uniformity in banking and
business conditions in the various districts are the net results of
these several approaches to the problem. But the member banks,
the expenses of which, by districts, are compounded into total
or average figures for the years in question, are located in cities
in these districts. Do the bank debits of different cities tend
to fluctuate concurrently with those for all cities? The facts
showing this to be the case are given in Table 198.
Moreover, are bank debits of different cities generally above
or below their own seven-year average levels at the same time
that the bank debits of the 141 cities combined are above or
below their corresponding level? The facts which indicate this
to be the case, are given in Table 199.
But to continue the line of
reasoning:
City bank debits tend to fluctuate
with total bank
debits;®
Total bank debits tend to
fluctuate with general business
conditions;
City bank debits tend to fluctuate
with city business
= conditions.®
4See Chart 52. This chart is drawn on a ratio basis. The debits for the respective
districts are the totals reported for the calendar years; the resources are the
average total earning assets per member bank by districts for the months of June
and of December.
5CQae Tahle 108
