250 
BANKING STANDARDS 
Moreover, total expense as a percentage of earning assets tends 
to be low or high, respectively, as ratios of investments are high 
or low; and high or low as ratios of time deposits and of gross 
earnings are high or low. That is, low or high expense ratios 
tend to be associated, respectively, with high or low investment 
ratios, and high or low investment ratios tend to accompany low 
or high expense ratios. Then, too, high or low expense ratios, 
respectively, accompany high or low ratios of time deposits and 
of gross earnings, and high or low ratios of time deposits and of 
gross earnings are associated with high or low expense ratios— 
high or low being interpreted not alone with respect to the seven- 
TABLE 148 
NATURE OF CORRELATION OF PERCENTAGE DIFFERENCES AND CHANGES 
FROM YEAR TO YEAR OF RATIOS IN PAIRED 
SERIES, 19109-1925 
NATURE of MEASUREMENT 
Inde- 
pendent 
Varia- 
bles 
Total 
Expense 
to 
Earning 
Assets 
Salaries 
and 
Wages 
to 
Earning 
Accets 
[nterest 
. on 
Deposits’ 
to, 
Earning | 
Assets 
SERIES CORRELATED 
(Exbressed as Ratios) 
Differences from 
District Averages 
| Changes from Year 
to Year 
Differences from 
Country’s Yearly 
Averages 
Dependent Variables 
Direc- 
tion 
Amount 
Direc- 
res | Amount 
Direc- 
rec | Amount 
[nvestments to 
Earning Assets 
Time Deposits to 
Total Deposits 
Time Deposits to 
Earning Assets 
Gross Earnings to 
Earning Assets 
rt —— 
Negative 
‘Positive Negative 
"Positive 
Positive 
[Positive (1) 
(x) 
Positive 
(1) 
Positive 
Positive 
dositive | (1) 
Positive 
Positive 
[Positive 
(2) 
[Negative ! (1) 
(2) (2) 
i | | 
(x) (2) (2) (2) (2) 
__ oe | | 
Positive [Positive (2) (2) (2) (2) 
Interest and Discounts on ] LL. | | 
Borrowed Money to |Negative [Positive (2) (2) (2) 
Earning Assets 
(1) Doubtful. 
(2) Not computed.