NORMS AND TRENDS IN NET EARNINGS 131 
when both gross earnings and operating expense are below the 
average (the lower right-hand quarter) than when they are above 
this level (the upper left-hand quarter); (2) based upon the av- 
erage for the period 1919-1925, and generally also on that for the 
individual years, net earnings are high in Districts 2, 3, 4, 6, and 
11; they are low in Districts 1, 5, 7, 9, 10, and 12; and they closely 
agree with the average in District 8; (3) low gross earnings and 
low operating expense ratios are frequently associated with high 
net earnings (as witness the case of District 3), and conversely, 
high gross earnings and high operating expenses are oftentimes 
accompanied by low net earnings, as in the case of District ¢; 
(4) the ratios for the same districts vary from year to year— 
notice the scatter of the plain figures of the same denomination, 
and (5) the seven-year average district ratios (the amounts in 
circles) differ markedly from the yearly ratios for the same dis- 
tricts. 
While the variations of the yearly ratios in the respective dis- 
tricts, relative to the seven-year level, are distinguished on Chart 
33, it is impossible to single out the ratios for the individual years 
and to observe the uniformities among them in the various dis- 
tricts. It is desirable to do this. Accordingly, Table 82 is pre- 
sented. 
Relative to the seven-year levels in the respective districts, net 
earnings as percentages of earning assets were generally high in 
1920, 1921, and 1922. To this general rule, there is one exception 
TABLE 82 
PERCENTAGE DIFFERENCE FROM DISTRICT AVERAGE, 1919-1925, OF 
RATIOS OF NET EARNINGS TO EARNING ASSETS FOR ALL MEM- 
BER BANKS, BY YEARS AND FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE 
DISTRICTS 
Boston. ..... 
New York. .. 
Philadelphia 
Cleveland. . . 
Richmond. . 
Atlanta. . .. 
Chicago. .... 
St. Louis. . ... 
Minneapolis. . 
Kansas City. . . 
Dallas. .............. 
San Francisco... .... 
~ 
: 3 
+17.01 
Peo FNTAGF DIFFFRENCE Fo~tr Drepior Arm aGE, 1019-1025 
1024 T 102% 
70 
"2 
+ 
+ 
+ € cn 
+c 
4¢ 
1¢ 
T31.3 
+17.9- 
+ 1c 
+ J] 
Ad 
Hi 
1 
— 
87 
~t 
— 5.40 
—10.38 
- 4.00 
- 4.48 
.38 
00 
"14 
9.60 
-_2.50 
= 9.29 
— 7.20 
-14.20 
+19.¢7 
4+14.20 
+ 
+ 6 
~10.00 
.20 
— 5 24