170 
BANKING STANDARDS 
series being treated in the same manner—it seems unnecessary 
to include tables showing such relations. Indeed, the net average 
percentage deviation of ratios of gross earnings to earning assets, 
for instance—the base being the respective seven-year district 
averages—is precisely the same when they are paired with ratios 
of investments to earning assets below or above the district 
levels as when they are paired with ratios of loans and discounts 
to earning assets above or below the same relative positions. 
Similar conditions obtain for the other series. Table 101 sum- 
marizes the types of correlation found to obtain. 
TABLE 101 
NATURE OF CORRELATION OF PERCENTAGE DIFFERENCES AND CHANGES 
FROM YEAR TO YEAR OF RATIOS IN PAIRED 
SERIES, 1919-1025 
NATURE OF MEASUREMEN1 
Inde- 
pendenf 
Varia- 
ble 
Loans 
and 
Dis- 
counts 
to 
Earn: 
ing 
Assets(3 
SERIES CORRELATED 
(Expressed as Ratios) 
Differences from 
District Averages 
Changes from Year 
to Year 
Differences from 
Country’s Yearly 
Averages 
Dependent Variables 
Direc- 
tion 
Amount 
Direc- 
tion | Amount 
il 1 Amount 
Demand Deposits to 
Total Deposits 
Time Deposits to 
Total Deposits 
Gross Earnings to 
Earning Assets 
Total Expense to 
Earning Assets 
Lo  — 
Net Earnings to 
Earning Assets 
Salaries and Wages to 
Earning Assets 
Interest on Deposits to 
Earning Assets 
Interest and Discounts on 
Borrowed Money to 
Earning Assets 
Taxes to 
Earning Assets 
—— 
“Other Expense” to . . 
Earning Assets | Positive | (x) | Positive 
(1) 
| @ 
(2) 
Positive ! (x) 
Positive 
Positive 
Positive 
Positive 
Positive 
® 
@ 
o 
(2) 
(oo! i. (2) 
| @ 2) 
(x) 
Ww wo @ 
Positive | (2) | 
(1] Doubtful. 
(2) Not computed. 
{3) For each of the series correlated with ratios of investments to earning assets, the nature of the 
correlation, so far as direction of deviation is concerned, is inverse to that found for the same 
series correlated with ratios of loans and discounts to earning assets. As to the amount of 
deviation, the type of correlation of each of these series with investments is the same as that 
found for them when they are correlated with ratios of loans and discounts to earning assets.