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

Usage license:: Get license information via the feedback formular.

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 NET EARNINGS 137 tion and percentage amounts of variation of the district ratios each year from the seven-year district levels, and (3) the per- centage amounts and nature, plus or minus, by which the ratios in each district differ from those for the country taken as a whole. Summarizing the relations according to these criteria, it is seen that (1) for the country as a unit, net earnings increased between 1919 and 1921 and decreased between 1921 and 1925, the rate of increase being largest between 1919 and 1920, and the rate of decrease greatest between 1922 and 1923; between 1923 and 1925 there was a gradual decline, the rate being less between 1924 and 1925 than between 1923 and 1924; and (2) while, with minor differences, the direction of change from year to year, and over the whole period, typical of the country as a whole, was followed by New York, Philadelphia, Chicago and St. Louis, it was deviated from by Minneapolis, Kansas City, Dallas, and San Francisco. Other features of this chart will receive attention after the norms and trends characterizing net earnings expressed in terms of gross earnings have been considered. 3. THE RELATION OF NET EARNINGS TO GROSS EARNINGS The gross earnings of member banks consist of interest and of “other income,” the former, it will be recalled, constituting 87% to 90% of the total.® The average amount of net earnings per unit of earning assets for all member banks for the period 1919 to 1925, was 1.99%. What are the relations between the net and the gross earnings for the banks in the respective districts for the years to which this study applies? Moreover, what are the norms and tendencies characteristic of the ratios? To answer these questions, first, for all member banks, and second, for na- tional and for state bank and trust company members, is the purpose of the following discussion. In this analysis, as in that which has preceded it, the ratios refer to the banks in the respec- tive districts taken as a single institution. (1) All Member Banks Out of each $100 of gross earnings received by all member 8 See Table 40, page 71.

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