X 
SERIES CORRELATED WITH DEPOSITS 
THE deposits of member banks, as noted in Chapter IV, are 
classified for purposes of analysis into two parts: (1) demand 
deposits, and (2) time deposits.! Each of these items is then 
expressed as percentages, first of earning assets, and second, of 
total deposits, in order to determine the norms and trends char- 
acterizing the amounts for all member banks by districts and 
by years. The same method of expressing the amounts is used 
in this chapter, the purpose of which is to find out and to measure 
the relations obtaining between deposits and a number of other 
series of banking data, measurements in the paired series relating 
to deviations from type—district and country averages—and to 
changes from year to year, deviations and year-to-year changes 
in all cases referring to ratios for all member banks in a district 
taken as a unit and being expressed as percentages. 
[. SERIES CORRELATED WITH RATIOS OF TOTAL DEPOSITS TO 
EARNING ASSETS 
Before discussing the relations of various series of data to 
demand deposits and to time deposits, both measured in terms 
of earning assets, brief account should be taken of the relations 
of gross earnings, operating expenses, and net earnings to total 
deposits. The problem is to determine the nature and amount 
of correlation of the ratios in each of these series with those 
of total deposits, the amounts correlated being the deviations 
from district averages and the year-to-year changes, and the 
methods of expressing the relations being the same as those 
described in Chapter VIII. The results, for district deviations, 
are contained in Table 102. 
This table shows that when total deposits are high—that is, 
above the district levels for the respective districts—ratios of 
“1For definitions of these terms and for a statement of the manner in which 
vearly figures are secured, see page 33. 
TT