202 
BANKING STANDARDS 
TABLE 124 
NUMBER OF DIsTRICT-VEARS IN WHIicH MEMBER BaANKs HAp RATIOS 
oF Time Deposits AND Ratios oF TOTAL EXPENSE, 
DEVIATING CLASSIFIED PERCENTAGE AMOUNTS FROM 
DISTRICT AVERAGES, 1919-1925* 
RATIOS! 
Time Deposits to 
Total Deposits 
(Percentage Differences) 
Position 
Amount 
RATIOS: 
Total Expense to Gross Earnings 
(Percentage Differences) 
. 
i p—— 
Abhnere 
6.00 4.00 2.10 
and to b 7% | Under 
over 6.00 aan 2:00 
Below 
2.7) 4.00 6.00 
Under te to | and 
2.00 4.00 6.00 over 
20.00 and over 
ADOVE 
10.00 to 20.00 
€ 
Under 10.00 
Under 10.00 
Below 
10.00 to 20.00 
20.00 and over] 
a 
*Boston district a=r1010; b=1020; c=1921; d=1022; e=1923; f=1024; §=1925 
little balance is left for profits. When, however, the proportion 
of savings deposits exceeds 75% of all deposits, earning power 
again begins to increase because under such conditions it is not 
necessary to maintain a large clerical organization.”*® 
The type of association between net earnings and time de- 
posits found for the classified member banks in the Boston dis- 
trict is paralleled by member banks for the country as a whole, 
in spite of differences in bank location and size and of the fact 
that in the present analysis member banks in a given district are 
treated as a single institution. 
Positive correlation between ratios of total expense to gross 
earnings and of time deposits to total deposits, for the member 
banks in the Boston district treated as a single institution and 
for the member banks in all districts similarly treated, for each 
of the years 1919 to 1925—one pair of ratios for each year—is 
"16 Curtiss, op. cit., Report for 1924, pp. 1-2.