Stock dividends

Banking standards under the federal reserve system

Bibliographic data

Monograph

Identifikator:: 175754061X

URN:: urn:nbn:de:zbw-retromon-136496

Document type:: Monograph

Title:: Stock dividends

Place of publication:: Washington

Publisher:: U.S. Gov. Print. Off.

Year of publication:: 1927

Scope:: vii, 273 S.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Conclusions

Collection:: Economics Books

SERIES CORRELATED WITH GROSS EARNINGS 22 5 and to year-to-year changes. In respect to district averages, the ratios must of necessity be sometimes above and sometimes below these levels; in respect to year-to-year changes, both the direc- tions and percentage amounts vary from year to year. In spite of the fact that the distribution of deviations of gross earnings ratios from the country level tend to remain fixed for the differ- ent districts, it is still significant to correlate for paired series the types and amounts of percentage deviation. While it is ap- parent that gross earnings in relation to earning assets vary geo- graphically, the ratios in the newer sections of the country gener- ally being higher than those in the older parts, it is not self-evi- dent that, in general, the districts having high and low ratios of gross earnings have high and low ratios, respectively, of total expense and of loans and discounts. And yet such are the facts for member banks, by districts, for the years 1919-1925, as shown in Table 135. Moreover, similar relations were found when the bases of comparison were percentage deviations from district levels and year-to-year changes. On the other hand, the relations between variable gross earn- ings and net earnings ratios are not so clear. On the average, net earnings tend to be low when gross earnings are high, and high when they are low, but these relations do not hold for all of the dispersion-groups. Neither are the relations unmistakable between variable gross earnings and variable demand deposits expressed, first, as a proportionate part of total deposits, and sec- ond, in terms of earning assets. But let Table 1 35 speak for itself, the reader remembering the manner in which it is constructed and the bearings which district locations have on interest rates, and hence on gross earnings. It is of interest to compare the distribution of the yearly paired ratios of gross earnings with loans and discounts and of gross earnings with total expense—all ratios being expressed in terms of earning assets—for (1) member banks in the Boston district for the different years 1919 to 1923, (2) those in all districts for 1925 alone, and (3) those for all districts for the years 1919- 1925. This is done in Table 136. Gross earnings and total ex- pense, and gross earnings and loans and discounts, are positively correlated in all districts for the year 192 5, as well as for the years 1919-192§. Comparisons in this chapter are made between district ratios

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