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 III. Correlated series for all Member Banks by districts

Collection:: Economics Books

SERIES CORRELATED WITH EARNING ASSETS 169 That is, in so far as positions relative to the district averages and directions of change from year to year are concerned, per- fect positive correlation occurs between loans and discounts and six other series; for these measures and for deviations from the country’s averages, it obtains between loans and discounts and gross earnings and total expense. Graphic illustrations of the relations, district by district and for the country as a whole, between ratios of loans and discounts to earning assets, and (1) ratios of demand deposits to total deposits, (2) gross earnings to earning assets, (3) total expense to earning assets, and (4) net earnings to earning assets, are shown by Charts 38, 39, 40, and 41, respectively. These charts are drawn on a ratio basis and are to be interpreted in keeping with the details relating to such charts given in Chapter VIII. They are based upon the data used in constructing Tables 97, 98, and roo. Not only is there marked correlation between loans and discounts and the series illustrated, as summarized in tabu- lar form for all districts and years, but such correlation obtains for each of the districts. 2. SERIES CORRELATED WITH RATIOS OF INVESTMENTS TO EARNING ASSETS The two parts of earning assets, as used in this study, are loans and discounts, and investments. Accordingly, when the loans and discounts are expressed as percentages of the earning assets, the complements of the amounts are the ratios of invest- ments to earning assets. Moreover, when the ratio of loans and discounts to earning assets for a given year for a given district de- viates plus (4) or minus (=) from the district or country level, or increases or decreases from year to year, the corresponding ratio of investments to earning assets deviates minus (=) or plus (4), or decreases or increases. Accordingly, it is unnecessary to dis- cuss the relations of the different statistical series to the ratios of investments to earning assets, the signs of deviations and of directions of change in the two cases invariably being opposite to those for loans and discounts. The percentage amounts of change in the two sets of ratios are, however, different, but, inas- much as, in general, the relations of each of the series to invest- ments are opposite to those to loans and discounts—the paired

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