SERIES CORRELATED WITH DEPOSITS 183
net earnings accompany relatively low demand deposits. These
relations obtain not only for demand deposits, positively and
negatively placed relative to the district levels, but also in general
 for the respective dispersion groups.
For the other series which, in Table 111, are paired with
demand deposits, inverse relations are found between the deviations
 of demand deposits and those of salaries and wages, interest
on deposits, and “other expense”; for interest on borrowed
money, and for taxes, the relations are direct.
Let us measure the net amounts by which the ratios of gross
and net earnings and of total expense deviate from their respective
 district averages in the districts having both variable demand
deposits and variable loans and discounts. The results secured
from this approach, found in Table 112, indicate that (1) gross
earnings and total expense are lowest for districts having demand
deposits, measured in the indicated manner, above, and loans
and discounts below their respective district averages, while
net earnings are lowest in districts having both series below their
levels; and (2) gross earnings and total expense are highest in

TABLE 112

NET PERCENTAGE DIFFERENCES FROM THEIR DISTRICT LEVELS FOR
RATI0S CORRELATED WITH CORRESPONDING DIFFERENCES IN
Ratios oF DEMAND DEPOSITS TO ToTAL DEPOSITS
AND OF LoANs AND Discounts TO
EARNING ASSETS, 1919-1925

NET PERCENTAGE DIFFERENCES FROM
DistricT LEVELS

RATIOS:
Demand Deposits
to
Total Deposits

Above
District Levels

Below
District Levels

Average

Rarios:
f.0ans and
Discounts to
<arning Assets

\verage......
\bove District
Levels. .....
Jelow District
Levels ....

verage......
Above District
Below District!
Levels

.verage......
Above District
Levels. .....
Below District
Levels......

Number
of
District.
‘Years

33
a7

vi

-2

-—y

45

RATIOS:
Gross Earnings
to
Earning Assets

-T 44

12 RE

-6 o1

+0.89

+4.48 1
—31 87

CM, A

+3.77
—-3.34 |

RATIOS!
Total Expense
to
Earning Assets

-—4.44

+0.77

~-0.07

+2 fa

+5.41
+0 24

—0.21
+3.39
—3.33

Ratios:
Net Earnings
to
Earning Assets

+6.53
+8.33
tr 6

IL9
+2.16
a nf

+.

+4.8s
—13.48