SERIES CORRELATED WITH DEPOSITS [77 
TABLE 107 
NET PERCENTAGE DIFFERENCES OF RATIOS FROM THEIR DISTRICT 
LEVELS CORRELATED WITH CORRESPONDING DIFFERENCES 
IN RATIOS OF DEMAND DEPOSITS AND OF LOANS AND 
Discounts To EARNING ASSETS, 1910-192¢ 
RATIOS! 
Demand Deposits 
to 
Earning Assets 
Above 
District Levels 
Below 
District Levels 
Average 
RATIOS: 
Loans and 
Discounts to 
Karning Assets 
.verage...... 
Above District 
Levels. .... 
Below District! 
.verage...... 
Above District 
Levels. ..... 
Jelow District! 
I avele 
.verage...... 
Above District 
Levels...... 
Below District 
Levels... 
Number 
of 
District- 
Years 
5 
12 
26 
NET PERCENTAGE DIFFERENCES FROM 
District LEVELS 
RATIOS: 
Gross Earnings 
to 
Earning Assets 
RATIOS: 
Total Expense 
to 
Earning Assets 
RaTies: 
Net Earnings 
to 
Earning Acsets 
34% 7 
-1.62 
-4.Q1L 
—_4a 06 
-T 
70 
an 
—-r 20 
v6 
+3.67 
+6.70 
-_—ry 
+1.92 
Q 
~-n.64 
I 
+5.39 
+ 20 
8s 
8 
-32.33 
oo. 
from year to year. Let us pair the percentage changes in the 
related series and observe the results. Table 108, containing 
the net percentage changes for gross earnings, total expense, and 
net earnings for classified percentage increases and decreases of 
demand deposits, shows that (1) when the latter increase, as 
they do in 38 of the 72 possible instances, the net change in 
the three related series is downward; (2) when they decrease, 
the net change in these series is upward; (3) for all of the classi- 
fied groups except one of increase and one of decrease, net changes 
in the three series varied inversely; and (4) in general, the greater 
the rise or fall in demand deposits, the greater the net fall or 
rise in gross earnings, total expense, and net earnings. 
That is, the three series by direction of change are negatively 
correlated, and by amount of change positively correlated, with 
demand deposits. This does not mean that the nature of the 
change is inverse and the percentage amount of change is direct 
in every one of the 72 cases (six movements between 1919 and 
1925, for each of the twelve districts), as between the related 
series, but in these cases it does mean that a large majority of 
them are of this type. Neither does it mean that changes in