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 classified
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
