SERIES CORRELATED WITH DEPOSITS 195 
TABLE 118 
CORRELATION OF YEAR-TO-YEAR PERCENTAGE CHANGES OF DISTRICT 
RATIOS IN PAIRED SERIES 
INDEPENDENT VARIABLE—Ratios of 
Time Deposits to Earning Assets 
Direction 
Amount of Change 
-_— 7 17 Average 
Percentage Percent- 
Groups ape 
Number 
of 
District- 
Years 
DEPENDENT VARIABLES —Net 
Average Percentage Change 
Gross 
Earnings 
> Earning 
crates 
Total 
Expense 
o Earning 
Aceate 
Net 
Earnings 
o Earning 
Accate 
T'atal 
Increase 
Decrease 
's and over........ 
‘oto xs... 
to ro... 
g (VT - 
Und-- 
NL 
and in total expense, and a net decrease (slight) in net earnings. 
For those in which time deposits increased by as much as or more 
than 10%, there was a net increase in all three series; for those 
with increases of less than 10%, the types of change for the dis- 
persion groups are less consistent. 
While the year-to-year changes in ratios of time deposits to 
earning assets were upward in all of the districts, except Minne- 
apolis between 1919 and 1920, the ratios of investments to earn- 
ing assets in some districts were increasing and in others decreas- 
ing from year to year. What were the net directions and changes 
in ratios of gross earnings, of net earnings, and of total expense 
in districts in which both time deposits and investments were 
increasing, and in those in which time deposits were increasing 
and investments decreasing? While on the whole, a net increase 
in gross earnings of 1.39% is associated with increasing ratios 
of time deposits, the rate is increased to 6.60% in the districts 
in which ratios of time deposits are increasing and ratios of in- 
vestments decreasing. On the other hand, gross earnings ratios 
show a net decrease of 3.40% in the districts in which ratios of 
both time deposits and investments increase. Not only are gross 
earnings ratios relatively low when time deposits and investments 
expressed as ratios are high,® but their average net change is 
downward when both of these ratios increase from year to year. 
The relations of increasing and of decreasing time deposit and 
6 See Table 11%, page 194.