NORMS AND TRENDS IN DEPOSITS 41 
3. THE RELATION OF DEMAND DEPOSITS TO EARNING ASSETS AND 
TO TOTAL DEPOSITS 
For purposes of further analysis, deposits are separated into 
demand and time items.®* The amounts are then expressed as 
percentages of earning assets and of total deposits, and the 
norms and trends are studied. This section of the discussion has 
to do with ratios of demand deposits to earning assets, and to 
total deposits. The next section relates to time deposits similarly 
measured. 
(1) Ratios of Demand Deposits to Earning Assets 
The average® ratio of demand deposits to earning assets, for 
the seven-year period 1919-1925, for all member banks in all 
districts, is 57.65. This amount, together with the ratios for 
each of the separate districts, is contained in Table 23. 
When the yearly district ratios are grouped as in Chart 7, 
the modal or typical amounts fall in the group 48-52. There is, 
however, concentration at the amounts 60-64, in a range which 
TABLE 25 
RATIOS oF DEMAND DEPOSITS TO EARNING ASSETS IN Arr MEMBER 
BANKS, FEDERAL RESERVE SYSTEM, BY YEARS AND 
BY FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE DISTRICTS 
Average 
(All Districts) 
Boston. .... 
New York. . 
Philadelphia 
Cleveland... 
Richmond. . 
Atlanta.... 
Chicago. ... 
5t. Louis. ... 
Minneapolis. 
Kansas City 
Dallas. .. I 
San Francisco... 
\verage 
‘1919- 
iqaac) 
ry fe 
€, of 
: _ 
RATIO DEMAND or DEPOSITS Tr FARNING ASSETS 
pom I rrr —— —————— 
I91Q 1920 1921 1022 | 
1023 | 1024 
10326 
ee EER Sew 
Re Ra 
en ep 
ca mr gy .22 
6.26 
56.02 57.88 
- 
40 
66.12 
68.14 
56 28 
60.83 
66 14 
53 £» 
rt 4 
62. 2¢ 
69.8€ 
53.38 
48.02 
14.96 
se 
60.01 
65.33 
s7.78 
+ 46 
60.22 
67.71 
£I.QI 
$7.50 
ts 26 
60.30 
68.07 
50.52 
46.23 
46.17 
ef oo 
fy 
“4 
..k2 
"40 
om 
Ir - 
wv FF 
Yr - Ya 
3a O4 
ya. 50 
5 For definitions of these terms as used, see page 32. 
® Weighted. Obtained by dividing the total demand deposits of all member 
banks in all districts for the years 1919-1925 by the total earning assets of such 
banks for the same years and by multiplying by 100. (The amounts for both 
numerator and denominator each year are the averages of the amounts reported 
on December 31 of the year preceding, and on June 30 of the year in question.)