32

BANKING STANDARDS

total expense to earning assets is 4.59. This figure is derived by
dividing the total expense during these years and for these districts
 by the total earning assets and multiplying by roo. The
yearly figures for the combined districts and the seven-year average
 amount for each district are obtained in a similar manner.
The ratios for the twelve districts and for the years in question,
as thus derived, are given in Table 56. An inspection of this

TABLE 56

Ratios oF ToTAL EXPENSE TO EARNING ASSETS IN Ari MEMBER
Banks, FEDERAL RESERVE SYSTEM, BY YEARS AND
BY FEDERAL RESERVE DISTRICTS

FEDERAL RESERVE DISTRICTS

——————————«

Boston. .....
New York.....
Philadelphia. . .*
Cleveland. ..
Richmond...
Atlanta. .....
Chicago. .....
5t. Louis......
Minneapolis. . .
Kansas City..
Pallas. .......
San Francisco. ..

Average
(All Districts)

Averag:
(1919-1925)


A.50

RaTine OF ToTAL EXPENSE TO ™ARNING ASSETS
1024 | 1025

1019 | 1920 | 1921 1022 |

4.08

4.33 i 5.08

4.54 )
4.68 | 4.56

———————

4.82

aD.

-

4.17
4.04
“a
Jo
Ar.

4.29
4.23
4.04
PARR.

4.30
3.99
4.c5
4.85
4.69
5.08
4.65
4.77
r.26
r.74
'.387
5,AT

table shows that the ratios differ from year to year for the combined
 districts and from district to district for the individual and
for the combined years. Accordingly, they may be analyzed with
these and other characteristics in mind. If they are grouped in
frequency form, no account being taken of the separate years and
districts, the distribution shown in Chart 17 is obtained.
The chart shows that the ratios cluster at the group 4.25-4.75,
the distribution around this modal or typical group approaching
the normal or bell-shaped type. They range from 3.49, for Philadelphia
 in 19109, to 6.46 for Dallas in 1921. There are, however,
comparatively few amounts at the extremes, 68% of the instances
falling between the limits 3.75 and 5.25. This chart, while it
takes no account of district or yearly differences, has the merit of
showing in simple form the typical or modal ratios, the range over
which the ratios extend, and the manner in which they cluster