SERIES CORRELATED WITH EXPENSES 245 
limited space, to reverse the process of measuring the association 
by making ratios of interest on deposits the independent, and 
ratios in other series the dependent variables. The order of asso- 
ciation is the same in both types of comparison; it is only the 
degree which differs. Accordingly, as is the case immediately 
above with respect to ratios of salaries and wages in terms of 
earning assets, correlations are restricted to the individual ex- 
pense items alone. Moreover, it is only the district deviations 
which are correlated, ratios of interest on deposits being used 
as the independent variable. 
Table 145 shows the type and nature of the association between 
ratios of salaries and wages and of interest and discounts on 
borrowed money and variable ratios of interest paid on deposits, 
the amounts in all cases being related to earning assets. It is 
apparent, from the showing in this table, that both by direction 
and by net percentage amounts of deviation, salaries and wages 
are positively correlated with interest payments. Moreover, as 
noted above, interest payments are positively correlated with 
salaries and wages. That is, in general, whenever and wherever 
high or low ratios of interest on deposits (or ratios of salaries 
and wages) are found, high or low ratios of salaries and wages 
(or ratios of interest on deposits) are encountered. This state- 
TABLE 145 
CORRELATION OF DISTRICT DEVIATIONS OF RATIOS IN PAIRED SERIES 
(Percentage Deviations from the Respective District Averages, Period 1919-1925) 
Pacsition 
INDEPENDENT VARIABLE— 
Ratios of Interest on Deposits to 
Earning Assets 
Distance fr~m Average 
Percentage 
Groups 
Average 
Dercentage 
Number 
of 
District- 
Years 
DEPENDENT VARIABLES— 
"Tet Average Percentage 
— 
— 
Salaries 
and 
Vages 
to 
"arning 
Aceete 
Interest and 
Discounts on 
Borrowed 
Money to 
Earning 
Assets 
ThAt 
Abhave 
rand 
o tr 
‘to. 
Td 
k 
1 
Jelow 
cm BVM LL eYTAR 
‘'atal 
40 
3 
'3 
+54.49