nN 
rN 
A 
» 
— : oN 
SERIES CORRELATED WITH GROSS EARNI : pappiot? = 
types of dispersion and of change in a number of series Fdata ‘od ST 
are associated with different types of dispersion and of chargé 
in gross earnings? These are some of the questions which it is 
the purpose of this chapter to answer. 
The questions in part may be answered by classifying the 84 
ratios of gross earnings to earning assets—those for the twelve 
districts for the years 1919 to 1925—according to the types and 
percentage amounts by which they differ from the district aver- 
ages. This is done in the stub (horizontal) classes of Table 131. 
Then, for the districts falling in each of such classes, the net 
amounts by which the ratios in each of a number of series differ 
from their average district levels may be determined. The results 
are shown in the caption (column) classes of the same table. 
Such a table permits one to observe both the nature and the de- 
gree of association of each of the series with gross earnings, but 
not with each other, the reason for the latter being that the 
basis of comparison is not between such series but between each 
of them and gross earnings. 
Table 131 is of interest in at least two particulars: It shows 
first, by sign, plus or minus, and second, by percentage amounts, 
the manner in which the respective series are associated with 
gross earnings. Let us examine it closely, paying attention first 
to the sections which show separately the correlative positions of 
the respective ratios for districts which have gross earnings above 
and below their respective district levels. Of the 84 ratios, 35 ful- 
filled the first, and 49 the second condition, the average percentage 
amounts of deviation being + 5.81 and ~ 4.22, respectively. 
For the 35 district-ratios of gross earnings to earning assets 
above their district levels—the average amounts for the seven 
years, 1919 to 1925, serving as such standards—and which are 
termed “high,” the net positions of ratios of loans and discounts, 
of total expense, and of net earnings to earning assets were also 
high. Moreover, the net position of each of the several expense 
items in these districts and years was above its seven-year level. 
On the other hand, for the districts with high gross earnings, the 
amounts of demand deposits, measured as proportionate parts of 
total deposits and as percentages of earning assets, were below 
their levels—that is, they were “low.” Contrariwise, for the 49 
district-ratios of gross earnings to earning assets below their dis- 
trict levels, positions the inverse of those just given obtain for 
27 
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