NORMS AND TRENDS IN EARNING ASSETS 15 
year; and (3) the positions occupied by member banks in each 
district relative to those for all districts combined. We are also 
interested in the relations between changes in the relative com- 
position of the earning assets and other conditions of bank opera- 
tion, but this problem will receive attention later. It is the former 
matter with which the present discussion is concerned. 
2. THE COMPOSITION OF EARNING ASSETS 
(1) Ratios of Loans and Discounts to Earning Assets 
If the ratios of loans and discounts* to earning assets for all 
member banks, by districts and by years, 1919 to 1925, are as- 
sembled into a single table, as is done in Table 3, considerable 
variation in the ratios is apparent. There are differences from 
year to year for each district, and from district to district for each 
year. Are there any consistencies or tendencies observable in the 
data? If the 84 ratios—7 for each of the twelve districts—are 
classified into frequency groups, as is done in Chart 1, a mode 
appears at 76% to 80%. Twenty-five per cent of all the ratios 
fall in this group. Relatively more fall below than above it, the dis- 
TABLE 3 
RaT10S OF LoANS AND Discounts To EARNING ASSETS IN ALL 
MEMBER Banks, FEDERAL RESERVE SYSTEM, BY YEARS 
AND BY FEDERAL RESERVE DISTRICTS 
R aTIOR ne T.aane AND DISCOUNTS TO FARNING ASSETS 
FrpeEratr RESERVE DISTRICTS 
Average 
(All Districts) 
Boston. ..... 
New York. . 
Philadelphia. 
Cleveland... 
Richmond. . 
Atlanta..... 
“hicago. ... 
St. Louis. . .. 
Minneapolis... 
Kansas City. . 
Dallas. ........ 
San Francisen 
. 
\verage 
(1919- 
1025) 
72.00 
(3.22 
0.1¢ 
+4 
~ 
: 
Y2 
Q7 
1919 ! 
60.32 
13.12 
10.08 
7.59 
1.66 
79.14 
59.0% 
70.00 
ww 
6 ’ 
re 
1920 1021 | 1922 1023 
27%.07 
6 
OO 
ef 
70.46 
76.79 
75.64 
62.72 
77° 
18 
52 
rr 
7° 
&- 
70.90 
66.92 
s¢ °° 
* 
, 
10 
1024 
{ 1038 
71.16 ° 
60.60 
71.63 
68.02 
60.52 
66.094 
3 
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: 0 
se. z 
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X 
2 
y 
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pe 
a0 
¢ Hereafter, when the term “loans and discounts” is used it is intended to mean 
*loans, discounts, and overdrafts.”