206

BANKING STANDARDS
TABLE 160

COMPARATIVE MEASURES OF REGRESSION TO TYPE FOR RATIOS OF TOTAL
EXPENSE TO EARNING Assers, MEMBER BANKS, BosTON
FEDERAL RESERVE DISTRICT, 1922-1925
(Percentage Differences from three different averages.)

DIFFERENCES: ALL PAIRS OF YEARS

PERCENTAGE DIFFERENCES:
(First Year of the
Pair of Years)

Position Groups
Average
40 and over \
30 and under 4o0
20 and under 30
to and under 20
Sere i aap wom

Below

Under 10
10 and under 20
20 and under 30
30 and under 40
10 and over

Average

Yearly Averages Yearly Averages 1 Yearly Averages
of All Banks of City-Groups of Volume-Groups

I
Number

Second Second
years years
less than | Number less than
First First
vears® years®

| Number

Second
years
less than
First
years®

iwi

ANE

“nb

— ag

ud $
-n.1
.- a

32
YI1o

—1r.§
-n 2

3
-.b
jr

i
26
‘x
179

—11.0
— 4.6
— 5.4
- 3.2
_— TT

de
+
.

2
pa

+ 1.5
+ 2.8
+ 4.4
+ 5.3
+ 6.7
41.7

1.
<
yy

6o¢

620

+ 2.3

641

*The signs relate to the prevailing changes in the ratios themselves compared with the averages in the
frst and the second years, minus (—) indicating that the ratios decrease, and plus (+) that they increase,

the combined pairs of years, but also for each pair of years
when the deviations are taken from the respective yearly averages
for all banks. When they are taken from the averages for the
respective city groups, it holds for the combined first and second
pairs of years for each city group, and when taken from the averages
 for the respective volume groups, it holds for the combined
first and second pairs of years for each volume group.
But is uniformity of results in any way related to the use
of averages as points of departure in computing deviations? To
answer this question we shall dispense with the averages, so
far as the calculation of differences from type is concerned, and
search for tendencies of regression. The method employed is
simple. the steps in carrying it out being as follows:
(1) Distribute the ratios for the individual banks in frequency
groups for a given year, say 1922. (2) Add the ratios in each
group, and divide by the number of ratios, thus securing an
4 See Table 168.