SERIES CORRELATED WITH DEPOSITS 183 
net earnings accompany relatively low demand deposits. These 
relations obtain not only for demand deposits, positively and 
negatively placed relative to the district levels, but also in gen- 
eral for the respective dispersion groups. 
For the other series which, in Table 111, are paired with 
demand deposits, inverse relations are found between the devia- 
tions of demand deposits and those of salaries and wages, interest 
on deposits, and “other expense”; for interest on borrowed 
money, and for taxes, the relations are direct. 
Let us measure the net amounts by which the ratios of gross 
and net earnings and of total expense deviate from their respec- 
tive district averages in the districts having both variable demand 
deposits and variable loans and discounts. The results secured 
from this approach, found in Table 112, indicate that (1) gross 
earnings and total expense are lowest for districts having demand 
deposits, measured in the indicated manner, above, and loans 
and discounts below their respective district averages, while 
net earnings are lowest in districts having both series below their 
levels; and (2) gross earnings and total expense are highest in 
TABLE 112 
NET PERCENTAGE DIFFERENCES FROM THEIR DISTRICT LEVELS FOR 
RATI0S CORRELATED WITH CORRESPONDING DIFFERENCES IN 
Ratios oF DEMAND DEPOSITS TO ToTAL DEPOSITS 
AND OF LoANs AND Discounts TO 
EARNING ASSETS, 1919-1925 
NET PERCENTAGE DIFFERENCES FROM 
DistricT LEVELS 
RATIOS: 
Demand Deposits 
to 
Total Deposits 
Above 
District Levels 
Below 
District Levels 
Average 
Rarios: 
f.0ans and 
Discounts to 
<arning Assets 
\verage...... 
\bove District 
Levels. ..... 
Jelow District 
Levels .... 
verage...... 
Above District 
Below District! 
Levels 
.verage...... 
Above District 
Levels. ..... 
Below District 
Levels...... 
Number 
of 
District. 
‘Years 
33 
a7 
vi 
-2 
-—y 
45 
RATIOS: 
Gross Earnings 
to 
Earning Assets 
-T 44 
12 RE 
-6 o1 
+0.89 
+4.48 1 
—31 87 
CM, A 
+3.77 
—-3.34 | 
RATIOS! 
Total Expense 
to 
Earning Assets 
-—4.44 
+0.77 
~-0.07 
+2 fa 
+5.41 
+0 24 
—0.21 
+3.39 
—3.33 
Ratios: 
Net Earnings 
to 
Earning Assets 
+6.53 
+8.33 
tr 6 
IL9 
+2.16 
a nf 
+. 
+4.8s 
—13.48