Banking standards under the federal reserve system

Bibliographic data

Monograph

Identifikator:: 1762969653

URN:: urn:nbn:de:zbw-retromon-142432

Document type:: Monograph

Title:: Banking standards under the federal reserve system

Place of publication:: Chicago

Publisher:: A. W. Shaw Company

Year of publication:: 1928

Scope:: xxxviii, 420 Seiten

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Norms and trends in individual series for all Member Banks, by districts

Collection:: Economics Books

NORMS AND TRENDS IN GROSS EARNINGS 73 CHART 13 DiIsTRIBUTION OF YEARLY DISTRICT RATIOS OF GROss EARNINGS TO EARNING Assets. ALL MEMBER BANKS, 1019-1023 Percentage Groups 5.25 and under 5.75 5.75 and under 6.25 6.25 and under 6.75 5.75 and under 7.25 7.25 and under 7.75 7.75 and under 8.25 3.25 and under 8.75 B.75 and under 9.25 3 Per Cont 15 30 a — T— 25 30 Number of Cases 4 15 25 18 '4 3 Table 51 that the ratios were predominantly low in 1919, 1920, 1923, 1924, and 1925, and predominantly high in 1921 and 1922. To this general rule, in the years which are termed low, Minne- apolis in 1919, New York and Richmond in 1920, and Philadel- phia, Cleveland, Richmond, and San Francisco in 1924 and 1925, are exceptions. In the years which are called high, there are no exceptions to the rule, although the percentage amounts by which the ratios in the several districts differ from their own seven-year average levels, particularly in 1921, vary widely. It appears, therefore, that in the matter of gross earnings, years which are “poor” or “good” in one district tend to be “poor” or “good” in all districts. Such a condition is not surprising in view of the fact that from 87% to 90% of the gross earnings of member banks is received in the form of interest, and that interest rates, while varying from district to district, reflect economic conditions. Moreover, the amount of interest received by a bank or by a group of banks depends upon the relative composition of its earning assets, and this changed in a more or less uniform way throughout the coun- try during this period. Then, too, the “other income” received depends largely on the use which is made of current funds. Capi- tal represented in such assets is fluid, tending, other things being

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