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 expenses
 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