. Cycles of prosperity and depression in the United States, Great Britain and Germany; a study of monthly data 1902-1908 . erve of note and coin were coefficients are given in Table VIII. TABLE VIII COEFFICIENTS OF CORRELATION—BRITISH BANKING GROUP Each series precedes (—)or lags behind ( + )Reserves by:Series correlated with Reserve of Note and Coin —1 mo. 0 mo. +1 mo. Bank Rate —.254 —.538 —.519 Open Market Rate —.236 —.501 —.474 Concurrent inverse correlation obtains in each case. Thesethree series were averaged together to form the British Bank-ing composite by the method used
. Cycles of prosperity and depression in the United States, Great Britain and Germany; a study of monthly data 1902-1908 . erve of note and coin were coefficients are given in Table VIII. TABLE VIII COEFFICIENTS OF CORRELATION—BRITISH BANKING GROUP Each series precedes (—)or lags behind ( + )Reserves by:Series correlated with Reserve of Note and Coin —1 mo. 0 mo. +1 mo. Bank Rate —.254 —.538 —.519 Open Market Rate —.236 —.501 —.474 Concurrent inverse correlation obtains in each case. Thesethree series were averaged together to form the British Bank-ing composite by the method used above. The relatives thusderived appear in Table K. In constructing this compositethe bank and open market rates were inverted. HANSEN—CYCLES OF PROSPERITY AND DEPRESSION 63 Of the available German data the following fall in the Bank-ing Group: note circulation, coin and bullion in the Reichs-bank, discounts and advances of the Reichsbank, deposits ofthe Reichsbank, bank rate, open market rate. Note circulationshows a steady secular growth, but no cyclical movements of CHAM 10: BAHKIHO COMPOSITES. 1902 1903 1904 1906 1906 1907 1906 any note. It was therefore omitted. The index numbers forthe remaining five series are given in Table J. Coin and bullion in the Reichsbank was correlated with theother series in the group. The coefficients of correlation ap-pear in Table IX. 64 UNIVERSITY OF WISCONSIN STUDIES TABLE IX COEFFICIENTS OF CORRELATION—GERMAN BANKING GROUP Series correlated with Coin and Bullion Each series precedes (—) or lags behind In Reichsbank: ( + ) coin and bullion by: —1 mo. 0 mo. +1 mo. -f-2 mo. -+-3 mo. +4 mo. +5 : +.502 +.389 Loans: —.523 —.5S8 —.584 Open Market Rates: —.603 —.671 —.711 —.732 —.676 Bank Rate: —.504 —.636 —.699 —.756 —.769 —.739 From this it appears that deposits and loans are substantiallysynchronous with coin and bullion. In the case of depositsthe correlation is perfectl
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