NET EARNINGS IN DISTRICT I 333 
TABLE 104 
AVERAGE NET CHANGE IN RATIOS OF NET EARNINGS TO EARNING As- 
SETS, 1924-1925, FOR MEMBER BANKS, BosTON FEDERAL RESERVE 
DistrICT, CLASSIFIED BY DIRECTION OF CHANGE AND PosI- 
TION OF RaATios oF Gross EARNINGS TO EARNING 
AsseTS, AND BY PosiTioN OF Ratios oF TorAL 
EXPENSE TO EARNING ASSETS* 
AVERAGE NET CHANGE, 1924-1925, IN RATIOS OF 
NET EARNINGS TO EARNING ASSETS 
RATIOS: 
Gross Earnings 
to 
Earning Assets 
Direction of 
Change, 
[1024-1028 
Position 
Relative to the 
Average, 1024 
Above 
f 
Ratios: Total Expense to Earning Assets 
(Relative to the 1024 Average) 
Above 
Below 
Above or Below 
-6 
ET 
Lr 26 
Increasing 
Below 
Above 
Decreasing 
Relow 
*The ratios which were the same as the averages in the respective series were distributed alternately 
ABOVE and BELOW; while the ratios of gross earnings which made no change were counted alternately as 
INCREASING and DECREASING. The figures in small type represent the number of banks to which the net 
~-hanee applies. 
ward when they are decreasing, irrespective of and with respect 
to the positions of the ratios of total expense relative to the 1924 
average. Similarly, as shown by Table 195, the net year-to-year 
changes in net earnings ratios are downward when ratios of total 
expense are increasing, but by smaller amounts than when ratios 
of gross earnings are decreasing. Indeed, when ratios of total 
expense are increasing and ratios of gross earnings are below 
their average level—in these positions such ratios tend to increase 
from year to year—the net change in ratios of net earnings is 
upward. When ratios of total expense are decreasing, ratios of 
net earnings tend to increase irrespective of and with respect to 
the position of gross earnings ratios, but generally by less amounts