28 BULLETIN 1382, U. R. DEPARTMENT OF AGRICULTURE 
The coefficient of gross correlation between each of these factors 
and the sum of expenditures per family, per cost-consumption unit 
and the percentage of the sum of expenditures per cost-consumption 
unit devoted to advancement substantiate somewhat the evidences 
of relations already pointed out in connection with the results given 
in tabular form. There are fairly high correlations between both 
net worth of the farmer and the average annual rate of accumula- 
tion, with expenditures per family and per cost-consumption unit. 
The number of years since the farmer began his earning life are 
scarcely related to the expenditures in any of the three terms of 
measurement. 
The coefficients of gross correlation between both the number of 
persons per family and the family living cycle, and expenditure in 
each of the three terms of measurement are significantly low. This 
is to be expected with expenditures per cost-consumption unit and 
the percentage of expenditures per cost-consumption unit for ad- 
vancement since the influence of varying numbers and ages of per- 
sons composing the family upon expenditures has been eliminated. 
The 1ow t correlation for both, the number in the family and the 
family living cycle, with expenditures per family may be accounted 
for in part by the economy possible from the provision of goods in 
quantities for larger families or by a decrease in the standard of 
living with an increase in the size of family. As stated previously, 
coefficients of correlation for schooling of the operator and the home 
maker and expenditures are low, with expenditures per family 
especially. 
Fairly high coefficients of gross correlation between both acres 
and cost of operation of the farm business and expenditures suggest 
the reflection of farm business resources in the ability to pay. 
Further comment on the relations shown in Table 12 will be made 
in connection with the interrelation of factors and criteria used. 
INTERRELATION OF FACTORS AND CRITERIA USED IN ANALYSIS 
AND CONSIDERATION OF OTHER FACTORS NOT ACCOUNTED 
FOR BY GROSS CORRELATIONS. MULTIPLE CORRELATIONS 
Although the coefficients of gross correlations presented in Table 
12 are indicative of the degree of relation of each of the several 
economic and other factors to expenditures in each of the three 
terms of measurement, they fail to account for the interrelation of 
all factors involved in the situation. They fail to designate the 
limitations of the factors used and to account for the influence of 
many other factors not available for use in connection with the 
analyses. Attention has been called to the fact that none of the 
factors or criteria of the ability to pay are indicative of the liquid 
assets available for the year of study. For example, the extent to 
which net worth of the farmer is reflected in liquid or quick assets 
has not been determined. Similarly, the extent to which the cost of 
operation of the farm business may compete w T ith family living 
for the funds available is unknown. Both of these two factors, net 
worth of the farmer and cost of operation of the farm business, fail 
to account for variations in the annual income owing to fluctuation 
in the prices of farm products. Furthermore, both ignore the ques- 
tion as to whether the year of study could be considered typical for 
any locality with regard to farm income. 
