230 
BANKING STANDARDS 
TABLE 192 
AVERAGE NET CHANGE, 1924-1925, IN RATIOS OF NET EARNINGS TG 
EARNING ASSETS, FOR MEMBER BANKS, BOSTON FEDERAL RESERVE 
DisTrICT, CLASSIFIED BY THE POSITION OF RATIOS OF GROSS 
EARNINGS AND OF TOTAL EXPENSE TO EARNING ASSETS, 
RELATIVE TO THEIR AVERAGES IN 1Q24% 
RATIOS: 
Gross Earnings 
to 
Earning Assets 
Position Relative 
to the 
Average, 1024 
Above 
Below 
Above or Below 
ron 
2 
AVERAGE NET CHANGE, 10924-1925, IN RATIOS OF 
NET EARNINGS TO EARNING ASSETS 
Ratios: Total Expense to Earning Assets 
(Relative to the 1024 Average) 
Above 
Below 
Above or Below 
0} 
- IT 
- 0A 
A a 
102 
4-27 
,— TR 
+ .22 
(22 
2&3 
+. 10 
+ of 
: .O0 
LW 4 
*The ratios which were the same as the averages in the respective series in 1924 were distributed 
alternately ABOVE and BELOW. The figures in small type represent the number of banks to which the net 
change applies. 
ratios noticeably increased. Essentially constant net earnings 
ratios in 1924 and 1923 for banks in the former group mean 
that the decreases from year to year, characteristic of gross earn- 
ings and of total expense ratios so placed, canceled each other; 
increasing net earnings ratios for those in the second group could 
have come about only by ratios of gross earnings increasing more 
than those of total expense—types of change from year to year 
characterizing ratios below their average levels. 
But changes in net earnings ratios between 1924 and 1925 are 
functions not only of the positions of gross earnings and of total 
expense ratios relative to their own average levels3? and relative 
"80 Gee the averages for the respective lines and columns in Table 102.