24
Trends

BANKING STANDARDS

1. Compared with the preceding year, ratios predominantly
rose in 1920, 1921, and 1924; and predominantly fell in 1922,
1923, and 1925.
2. Ratios which are high, relative to the seven-year average for
the district to which they apply, generally tend to decrease the
following year; those which are low, when measured in the same
manner, tend to increase,

3. The net percentage amounts of rise or of fall from year to
year vary directly with the percentage amounts of dispersion from
the seven-year averages.
4. The trend in the ratios was consistently upward from 1919
lo 1921; from 1921 to 1923, it was generally downward.

(2) Ratios of Investments to Earning Assets

The ratios of investments to earning assets for the years 1919
to 1925 for each and for all of the districts combined and for the
combined years for each of the twelve districts are given in Table
12. The amounts are the complements of those for loans and
discounts to earning assets—the two ratios for each year and
district equaling 100.
The average ratio of investments to earning assets for the com-TABLE

 12

RATIOS OF INVESTMENTS TO EARNING ASSETS IN ALL MEMBER
Banks, FEDERAL RESERVE SYSTEM, BY YEARS AND
BY FEDERAL RESERVE DISTRICTS

FEDERAL RESERVE DISTRICTS

Average
(All Districts)

3oston. ...... BH HE hin
New York. ... RR
<hiladelphia. . Cree
“Cleveland. ... eee
ichmond..... een
stlanta........ : i
‘hicago....... -o3
t. Louis. ....,.. PRN
“inneapolis. ... vn hon
ansas City... .........
Jallas.......... . ........
San Francisco. .............

\verag:
(1919-1925)


28 oo

0.77
19.81
19-59
34
CF

77
6.03

RaTI0® ap INVES™= = 10 EARNING ASSETS

I919 | 1920

1021

1922 1023 | 1924

20.68

24.03 | 24.00

27.44 } 20.54 °

28 84

«0.8%
29.92
42.41
38.34
30 26
30 as
0 "1
6 93
23 17
22.1;
22.4¢
20.78

22.5%.
24.36
3.28
2
3%
2 go
: gn
22.
rr
7.07
49%
19.70
28.21

32.60
24.55
37.14
‘x 20
02
(9.f"
0, |
TI

"7.42
30.87
40.19
32.12
27 04
Ic 12
’ ak

209.10
33.08
40.73
34.03
22.24
19.54
26.45
28.01
22.25
22.65
19.06
26.24

20.3%
31.08
39.48
33.06
21.49
10.14
26.29
22 10
1
a. 7
19.0:
25.10

14
J
re
Ls

38.

| 1925

30.40

25.93
33.29
40.02
34.77
21.53
22.40
27.70
27.80
30.20
25.90
73.00
27.3*