NORMS AND TRENDS IN NET EARNINGS 147 
TABLE 93 
Ratios oF NET EARNINGS TO GROSS EARNINGS IN STATE BANKS, 
FEDERAL RESERVE SYSTEM, BY YEARS AND 
BY FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE DISTRICTS 
Boston. ... 
New York. .. 
Philadelphia. 
Cleveland... 
Richmond. 
Atlanta..... 
Chicago. ... 
St. Louis. . .. 
Minneapolis. 
Kansas City. 
Dallas. ...... 
San Francisco. . 
Average 
(All Districts) 
Averag 
(1910- 
102%) 
20.04 
.0¢ 
18 
"lg 
£1. 1. 
16-0 
Ratios NET FARNINGE TO Gross EARNINGS 
[ 1025 
k {ol 1 od 
al 
20  &r 
20.68 
. 28 ea 
26.04 
27.46 
25.46 
31.26 
5. .20 
26.63 
27.00 
an ~~ 
a 
3 
3 
3¢ 
” 
z 
4 
- 
ad 
27.97 
1. vg 
25.02 
32.07 
37.87 
30.12 
+ 
24.00 
20.4 
37 °° 
2F ar 
~ 
* £ 
20. 
N 
1G. 
1 
TH 
2. 
20.16 
fall in the group 27.50-30.00 and for the state banks in the group 
25.00-27.50. That is, there is a difference of 2 points—an amount 
somewhat larger than that indicated by the difference between 
the seven-year averages for the two groups in the entire System. 
Accordingly, it is of interest to observe both the ranges and the 
groupings for the two types of institutions. 
The minimum and the maximum ratios for the state mem- 
bers extend beyond those for the national institutions. More- 
over, within the respective ranges, the nature of the grouping 
is different. For the state banks the area of concentration extends 
from 25.00 to 32.50; for the national banks from 25.00 to 37.50. 
There are relatively more low and relatively fewer high ratios 
for state than for national banks. Accordingly, not only the 
average ratio but also the prevailing ratios of net earnings to gross 
earnings is higher for national than for state banks—‘“bank,” it 
should be remembered, being the abbreviated term used for all 
of the respective member banks of the class in question in an 
entire district. 
So much for the size of the ratios. How about the rates of 
change from year to year and over the whole period 1919-1925 
of the ratios for the two kinds of institutions? The rates are 
graphically shown in Chart 37, which is drawn on a ratio basis. 
It is difficult briefly to summarize the various facts disclosed 
by this chart, and only those most clearly indicated will be