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BANKING STANDARDS 
TABLE 102 
CORRELATION OF DisTRICT DEVIATIONS OF RATIOS IN PAIRED SERIES 
(Percentage Deviations from the Respective District Averages, Period 1019-1925) 
INDEPENDENT VARIABLE—Ratios of | 
Total of Demand and Time Deposits 
to Earning Assets 
Distance from Average 
Position 
Percentage 
Groups 
Average 
Percent- 
age 
Total. 
— A. 67 
Above 
QaANA OVer.....c.ovuevan 
OID Oicowmes ssmssrne 
BIB. uu eo imssmmennme 
Underz.............. 
I.29 
7.74 
4.54 
Af 
Below 
Jnder 3... - ‘ww ww 
t06. coven 
PO smi mms me 
oandover.............. 
Cc QO 
Total. . 
i 
Number 
of 
District- 
Years 
42 
7 
4 
a 
? 
DEPENDENT VARIABLES—Net 
Average Percentage 
—— 
Gross 
Earnings 
to 
Earning 
Assets 
Total 
Expense 
to 
Earning 
Assets 
Net 
Earnings 
to 
Earning 
Assets 
— 0 
Q 
+ 0 %4 
- 5.26 
1 ~ 
Bd 
2 
4 
2 
+ 
+ 
+ 1.28 
— 8.10 
— 9.15 
— 5.04 
— 3.12 
I! 
+10.10 
+ 2 48 
4 42 
+ 3.66 
re 
+ 
“+ 0.79 
+ 6.13 
gross earnings and of net earnings are low—that is, below the 
corresponding levels—and that when they are low, the ratios for 
both of the other series are high. These are the net results for 
the districts with high or low total deposits. Moreover, for every 
classified dispersion group, except two, this inverse condition 
obtains. While the relations between positions are inverse, those 
between percentage amounts of difference are direct. That is, 
the more the total deposits deviate from type, the more widely 
do both gross and net earnings for the same districts vary from 
normal. When the deviations from the district levels for total 
expense are paired with corresponding deviations for total de- 
posits, the relation of the positions, rather than being inverse, as 
is the case for gross and for net earnings, is moderately direct, 
high total deposits being generally associated with high total 
expense, and low total deposits with low total expense. 
When the directions and classified percentage amounts of year- 
to-year changes in gross and net earnings and in total expense 
are correlated with similar changes in total deposits, it is found 
that with all decreases, and with increases of less than 4% in 
ratios of total deposits, the net direction of change for the 
related series is upward, no exceptions being found for the 
groups for gross earnings and for total expense and for only two 
groups for net earnings. Increases of 4% and more in the ratios