SERIES CORRELATED WITH DEPOSITS 181 
(4) districts with demand deposits increasing and with loans and 
discounts decreasing from year to year have the greatest decreases 
in gross and net earnings and in total expense. The increases 
in these ratios are highest in districts with ratios of demand 
deposits decreasing and with loans and discounts increasing. 
But demand deposits may also be measured in terms of total 
deposits, and with their variations from type and changes from 
year to year similar variations and changes in other series may 
be correlated. A study of this nature follows. 
(2) Ratios of Demand Deposits to Total Deposits 
The deviations of the district ratios of demand deposits to 
total deposits for the several districts and years, when meas- 
ured by percentage group-amounts, plus and minus, from the 
respective district levels for the period 1919-1925, are contained 
in the stub classes of Table 111. If, for the ratios thus classi- 
fied, the net percentage dispersion is determined for related 
series, corresponding districts and years being paired, the figures 
shown in the caption classes (the columns) are secured. It is 
these amounts in relation to variable ratios of demand deposits 
which may be observed for evidence of systematic association. 
[t is unnecessary to specify the relations for all of the series 
because they are generally apparent from an inspection of the 
table. Accordingly, attention is directed to those between varia- 
tions in demand deposits and in gross earnings, total expense, 
and net earnings, inasmuch as for these series comparisons are 
available with demand deposits measured in units, first, of 
2arning assets,? and second, of total deposits. 
When district ratios of demand deposits to total deposits 
are above their respective levels, gross earnings and total ex- 
pense are below and net earnings are above their respective 
district levels. When demand deposits are below, relations the 
inverse of those just noted hold for each of the different series. 
Conditions similar to these were observed when demand deposits 
were expressed in terms of earning assets. In terms of both 
measurements, therefore, low gross earnings and total expense 
and high net earnings are associated with relatively high demand 
deposits, while high gross earnings and total expense and low 
2See Table 106, page 1%6.