104 
BANKING STANDARDS 
to low, and small time deposits and investments conducive to 
relatively high net earnings. So much for the prevailing types 
of association between each of these series and varying amounts 
of time deposits and of investments, the bases of comparison 
being the differences of the district ratios from their respective 
seven-year average levels for the period 1919-1925. 
TABLE 117 
NET PERCENTAGE DIFFERENCES FROM THEIR DISTRICT LEVELS FOR 
Ratios CORRELATED WITH CORRESPONDING DIFFERENCES IN 
RATIOS OF TIME DEPOSITS AND OF INVESTMENTS 
10 EARNING ASSETS, 1919-1925 
Rarios: 
Time Deposits 
to 
Earning Assets 
, Above 
District Levels 
Below 
District Levels 
I eee ere 
Average 
RATIOS: 
Investments 
to 
Earning Assets 
Number 
of 
District- 
Years 
Average...... 4§ 
Above District! 
Levels... | 30 
Below District! 
Levels..... 15 
Average...... 
Above District 
Levels...... 
Below District 
Levels. .... 
39 
15 
Average...... 
Above District 
Levels...... 
Below District 
Levels...... 
29 
NET PERCENTAGE DIFFERENCES FROM 
District LEVELS 
RATIOS: 
Gross Earnings 
to 
Earning Assets 
RarTios: 
Total Expense 
to 
Earning Assets 
RATIOS: 
Net Earnings 
to 
Earning Assets 
+1.56 
+ 0.40 
+ 3.88 
+0.32 -2.20 oT 
—6.75 —10.80 
+4.74 + 3.08 
—0.04 —o.21 — 
—3.34 1 — 3.33 
+3.77 + 3.30 
=5.55 
-7.35 
~1.97 
+7.24 
+4.24 
B +9.11 
to.30 
—3.48 
+4.85% 
But whatever positions the ratios in the various series may 
have relative to their own levels, they change from year to year. 
Do they tend to change in the same or in an opposite direction; 
are the percentage amounts of change related in any way; and 
what are the effects upon gross and net earnings and upon total 
expense of changes, first, of time deposits alone, and second, of 
both time deposits and investments? These questions are an- 
swered in the details in Tables 118 and 119. 
Table 118 shows the net direction and percentage amounts of 
change from year to year of ratios of gross earnings, of total 
expense, and of net earnings, associated with classified percent- 
age changes of time deposits. For districts showing increases in 
time deposits, the net change was an increase in gross earnings