NORMS AND TRENDS IN EXPENSES 119

all districts combined is traced out with minor variations by those
in each district. It is this tendency to similarity which is the most
distinguishing single feature of the chart. It should be kept in
mind, of course, that Chart 27 shows the amounts paid in relation
to earning assets, and that it is drawn, as are the others of this
class. on a ratio basis.1?

(4) Ratios of Taxes to Earning Assets
According to the classification of operating expense of member
banks, as reported by the Federal Reserve Board, the average
amount of taxes paid by such banks for the years, 1919 to 1925,
combined, was $4.11 for each $1,000 of earning assets.2® This
amount is 9.0% of the total operating expenses paid and, relative
to salaries and wages, interest on deposits, and interest and discounts
 on borrowed money, respectively, is as {:llows: 34.8%;
20.8%; 140.8%. While $4.11 is the average, there are wide variations
 from this amount for the combined districts by years and
for the combined years by districts. For instance, the highest
amount, $4.93, for all districts combined, was paid in 1921; the
lowest, $3.46, in 1925. Similarly, the largest amount for the
combined years paid by a single district was $6.39 for Dallas;
the smallest, $3.07 for Philadelphia.

TABLE 79
Ratios oF TAXES PER $1,000 OF EARNING ASSETS IN ALL MEMBER
Banks, FEDERAL RESERVE SYSTEM, BY YEARS AND
BY FEDERAL RESERVE DISTRICTS

FEDERAL RESERVE DISTRICTS

Average
{All Districts)

Boston. . ..
New York.
Philadelphi
Cleveland. .
Richmond.
Atlanta....
Chicago. . ..
5t. Louis. . ..
“Ainneapolis.
Kansas City.
Dallas. .....
San Francisco

Averag
‘1919-rg2c)


4 I

Qs- EO EEE

~~ 7 TARNIN- ASSET"
1028

1910

1020

1021

4.001 4.22

4.03 1
311 4.80

32.70

2 90 |

2.46

4.0;
a Of
:

4.74
3.81
op

5°!
4 52
& r
d

2
<

5
* 35

3.99
2.39
3.04
Pr

3.¢
.78
3.7"
3

3.72
3.57
a pb

1% See discussion of such charts, page 21.
20 For the method for computing earning assets, see explanation, page 13.