NORMS AND TRENDS IN EARNING ASSETS 21 
The foregoing discussion of 
the ratios of loans and discounts 
to earning assets has had to do 
primarily with the direction of 
change from year to year and 
with the relative position of the 
yearly district ratios, with re- 
spect (1) to a seven-year aver- 
age ratio for each district, and 
(2) to the yearly averages for 
the twelve districts combined. 
Littlehasbeensaidabout the per- 
centage amounts of the change 
from year to year and of the 
percentage amounts of disper- 
sion. In order to summarize 
them, Chart 2 is presented. 
This chart, drawn on a ratio basis, is to be interpreted as fol- 
lows: (1) The vertical positions of the pairs of solid and dotted 
lines on the chart have no significance. The inclinations of the 
lines represent the percentage changes from year to year in the 
ratios of loans and discounts to earning assets for the districts 
named. (2) The korizontal positions of the solid lines, for the 
districts placed opposite each other on the chart, indicate the rela- 
tive size of the percentage differences of the ratios for the dis- 
tricts as compared with the average ratios for the twelve districts 
combined. The dotted lines refer to the averages for the twelve 
districts combined. (3) The distance by which the solid line for 
pach district is above or below the dotted line indicates the per- 
centage amount by which the district ratio exceeds or falls short 
of the ratio for the country as a whole in the same year. (4) The 
short horizontal line for each district indicates the average ratio 
for that district for the seven-year period, 1919-1925—the dis- 
tance for any year, between this line and the solid line, indicating 
the percentage variation. 
Some of the more important characteristics of a chart drawn on 
a ratio basis are as follows: (1) equal vertical rises or equal up- 
ward slopes indicate equal rates of increase; (2) equal vertical 
drops or equal downward slopes indicate equal rates of decrease;