Banking standards under the federal reserve system

Bibliographic data

Monograph

Identifikator:: 1762969653

URN:: urn:nbn:de:zbw-retromon-142432

Document type:: Monograph

Title:: Banking standards under the federal reserve system

Place of publication:: Chicago

Publisher:: A. W. Shaw Company

Year of publication:: 1928

Scope:: xxxviii, 420 Seiten

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Norms and trends in individual series for all Member Banks, by districts

Collection:: Economics Books

NORMS AND TRENDS IN EXPENSES 89 the districts must be above and that some of them must be below the average. But it is not required that the same districts should be on a given side of the average during the seven separate years, more particularly when the deviations from the average, as in the case, for instance of St. Louis, are small. Moreover, the districts with ratios in a given year farthest removed, plus or minus, from the average for the country as a whole, tend to hold the same rela- tive positions throughout all of the years. This fact is more ap- parent in Chart 18 than in Table 61. Chart 18 is drawn, as are the others of this type already pre- sented, on a ratio basis.® While a common scale is used for the ratios for the various districts, the position of a solid line on the chart has no significance except when it is compared with the dotted line and with its own seven-year average. An inspection of this chart shows, among other things, that (1) for the country as a whole, and for each district® the trend of expense ratios was upward from 1919 to 1921, the rate tending to be greater be- tween 1920 and 1921 than between 1919 and 1920; (2) the ratios for the country as a whole and for most of the districts tended to fall between 1921 and 1925, the rate of decrease being most marked between 1921 and 1923; (3) the ratios, as a rule, were higher in 1924 than in 1923; (4) the average for the country was lower in 1925 than 1924, but the individual districts were not consistently either higher or lower; (5) on the whole, the rates of change in the respective districts do not, except in certain years, markedly differ from those for the country as a whole; (6) the ratios for certain districts are consistently above, and for others consistently below, those for the twelve districts combined; and (7) the years in which the ratios in the several districts are above or below their own seven-year average levels are generally the same. It should be recalled that we are here discussing the percentage relation between two variables—the operating expenses and the earning assets—of all member banks in the districts separately and combined. Both the expenses and the earning assets changed from year to year in each of the districts. Moreover, the abso- lute amounts and the composition of each differ markedly among the districts. Yet when ratios of expenses to earning assets are 8 For discussion of the interpretation of such a chart, see page 21, "Except for Dallas between 1010 and 1020.

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