SERIES CORRELATED WITH DEPOSITS 103 
earnings. In summary, then, it is seen that relatively high time 
deposits, in relation to earning assets, are associated with low 
gross earnings, high total expense, and low net earnings; and 
that relatively low time deposits accompany high gross earnings 
(the relation is not marked), low total expense, and high net 
sarnings. 
But variations in ratios of the total expense and of the earnings 
of banks individually or collectively are, of course, attributable 
TABLE 116 
CorrRELATION OF DisTRICT DEVIATIONS OF RATIOS IN PAIRED SERIES 
(Percentage Deviations from the Respective District Averages, Period 1910-1925) 
INDEPENDENT VARIABLE—Ratios of 
Time Deposits to Earning Assets 
Dictanra from Average 
Position 
Percentage | 
Groups 
Average 
Percent. 
age 
Total 
bya 02 
Above 
jo and over... 
roto 30..... 
'0t020...... 
Tnder vo 
1'34.79 
{-22.08 
L14. 70 
Realow 
nder 10.... 
otozo..... 
oto 30..... 
io and aver. 
Total... 
Number 
of 
District. 
Years 
DePENDENT VARIABLES—Net Average 
Percentage 
Gross 
Earnings 
to 
Earning 
Assets 
Total 
Expense 
to 
Earning 
Assets 
Total 
Expense 
to 
Gross 
Earnings 
Net 
Earnings 
to 
Earning 
Assets 
rw 
ds ~< 
te 
~~ 
i 
to conditions other than variable amounts of time deposits. This 
fact is apparent so far as groups of banks are concerned, from 
the detail in Table 117, account being taken of the effect on ex- 
penses and earnings of variable ratios of time deposits and of 
investments. The amounts in this table indicate that (1) gross 
and net earnings ratios are highest in districts having both time 
deposits and investments low, while total expense is highest in 
districts with time deposits high and investments low; (2) gross 
earnings and total expense are lowest in districts having time 
deposits below and investments above their respective district 
levels, while net earnings are lowest in those in which both time 
deposits and investments are relatively high; and ( 3) relatively 
large ratios of time deposits and of investments are conducive