SERIES CORRELATED WITH DEPOSITS 179
associated with highest rises are decreasing demand deposits and
increasing loans and discounts.
Demand deposits which are high or low relative to the district
levels and which are increasing or decreasing from year to year
may be above or below the level for the country as a whole. The
same is true of each of the other series being discussed. It is
TABLE 109
NET PERCENTAGE CHANGES FROM YEAR TO YEAR IN RATIOS CORRE
LATED WITH CORRESPONDING CHANGES IN RATIOS OF DEMAND
DErosits AND OF LoANS AND Di1scOUNTS To EARNING
ASSETS, 1919-1925
RATIOS:
Demand
Deposits
0 Earning
Accepts
Increasing
Decreasing
A —————————
Average
RATIOS:
Loans and
Discounts
o Earning
Accete
iverage
ncreasing
Nacrsacing
Average
acreasing
Nacreagie —
Average
Increasing
Decreasing
Number
of
District-Years
‘»
NET Prprevrane CHANGYF »e ut Vreap 10 YEAR
RATIOS: Gross !
Earnings to
Earning Assets
RaTt10S: Total
Expense to
Earning Assets
Ratios: Net
Earnings to
Earning Assets
—~2.12
A= . 89
‘2
>. 40
IN
y
3
ew 8
L230 La.r6
jab]
® og
- ob
+12.46
—d.43
of interest, therefore, to pair the ratios for such series with those
for demand deposits, the items correlated being the district deviations
of the respective ratios from the corresponding yearly averages
for the combined districts. When this is done, the details
in Table 110 are secured.
This table shows that when demand deposits relative to the
country level were high, the net positions of the ratios of gross
earnings, of net earnings, and of total expense, judged by the
same standard, were high. When demand deposits were low,
gross earnings and total expenses were high, while net earnings
were low. That is, relatively high amounts of gross earnings
and of total expense are associated with either low or high
amounts of demand deposits. It is net earnings alone which seem
to be influenced, so far as position is concerned, by that of demand
deposits. Yet, even in this case, direct correlation is not complete
when the dispersion groups are considered. Obviously, factors
other than the relative amounts of demand deposits influence
