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 measured
 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 classified,
 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 variations
 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 expense
 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.