104

BANKING STANDARDS

to low, and small time deposits and investments conducive to
relatively high net earnings. So much for the prevailing types
of association between each of these series and varying amounts
of time deposits and of investments, the bases of comparison
being the differences of the district ratios from their respective
seven-year average levels for the period 1919-1925.

TABLE 117

NET PERCENTAGE DIFFERENCES FROM THEIR DISTRICT LEVELS FOR
Ratios CORRELATED WITH CORRESPONDING DIFFERENCES IN
RATIOS OF TIME DEPOSITS AND OF INVESTMENTS
10 EARNING ASSETS, 1919-1925

Rarios:
Time Deposits
to
Earning Assets

, Above
District Levels

Below
District Levels

I eee ere

Average

RATIOS:
Investments
to
Earning Assets

Number
of
District-Years


Average...... 4§
Above District!
Levels... | 30
Below District!
Levels..... 15

Average......
Above District
Levels......
Below District
Levels. ....

39
15

Average......
Above District
Levels......
Below District
Levels......

29

NET PERCENTAGE DIFFERENCES FROM
District LEVELS

RATIOS:
Gross Earnings
to
Earning Assets

RarTios:
Total Expense
to
Earning Assets

RATIOS:
Net Earnings
to
Earning Assets

+1.56
+ 0.40
+ 3.88
+0.32 -2.20 oT
—6.75 —10.80
+4.74 + 3.08
—0.04 —o.21 —
—3.34 1 — 3.33
+3.77 + 3.30

=5.55
-7.35
~1.97
+7.24
+4.24
B +9.11
to.30
—3.48

+4.85%

But whatever positions the ratios in the various series may
have relative to their own levels, they change from year to year.
Do they tend to change in the same or in an opposite direction;
are the percentage amounts of change related in any way; and
what are the effects upon gross and net earnings and upon total
expense of changes, first, of time deposits alone, and second, of
both time deposits and investments? These questions are answered
 in the details in Tables 118 and 119.
Table 118 shows the net direction and percentage amounts of
change from year to year of ratios of gross earnings, of total
expense, and of net earnings, associated with classified percentage
 changes of time deposits. For districts showing increases in
time deposits, the net change was an increase in gross earnings