, 
BANKING STANDARDS 
The ratios of total deposits to earning assets are smaller than 
those for the country as a whole during all of the seven years, in 
New York (except in 1922), Philadelphia, Richmond, and St. 
Louis. They are higher throughout in Boston (except in 1919) 
and in San Francisco. The districts having percentages closely 
agreeing with the country’s averages are Boston, New York, 
Cleveland, Chicago, Minneapolis, and Kansas City. ns 
In spite of the minor differences in the ratios and in the rates 
of change from year to year in the various districts, the outstand- 
ing picture presented by Chart 6 is the consistency and uniform- 
ity which obtains. Similarity is far more apparent than dissimi- 
larity. And such is to be expected provided that (1) the basic 
factors contributing to the results are common to the various dis- 
tricts; (2) the individual banks making up the totals in each dis- 
trict are subject to a common control with respect, among other 
things, to reserve requirements; and (3) banking experience and 
competition between banks tend to determine a normal relation 
between deposits and assets. More will be said later about the 
factors contributing to such “normal” relations. 
In brief, the norms and trends characterizing the ratios of total 
deposits to earning assets for all member banks, by districts and 
years, are as follows: 
Norms 
1. The modal or most common ratios fall in the group 81-84, 
the weighted arithmetic mean being 85.68. 
2. District ratios were predominantly low, relative to their 
seven-year averages, in 1919, 1920, and 1921; they were pre- 
dominantly high, measured in the same manner, in 1923, 1924, 
and 1925. 
3. Except for Districts 3, 5, 8, and 12—Philadelphia, Rich- 
mond, St. Louis, and San Francisco—the percentages closely cor- 
respond to those for the twelve districts combined. 
Trends 
Between 1921 and 1925, the ratios, with two exceptions, 
rose from year to year. Between 1919 and 1925, an increase 
occurred in each of the districts. 
i.