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 III. Correlated series for all Member Banks by districts

Collection:: Economics Books

nN rN A » — : oN SERIES CORRELATED WITH GROSS EARNI : pappiot? = types of dispersion and of change in a number of series Fdata ‘od ST are associated with different types of dispersion and of chargé in gross earnings? These are some of the questions which it is the purpose of this chapter to answer. The questions in part may be answered by classifying the 84 ratios of gross earnings to earning assets—those for the twelve districts for the years 1919 to 1925—according to the types and percentage amounts by which they differ from the district aver- ages. This is done in the stub (horizontal) classes of Table 131. Then, for the districts falling in each of such classes, the net amounts by which the ratios in each of a number of series differ from their average district levels may be determined. The results are shown in the caption (column) classes of the same table. Such a table permits one to observe both the nature and the de- gree of association of each of the series with gross earnings, but not with each other, the reason for the latter being that the basis of comparison is not between such series but between each of them and gross earnings. Table 131 is of interest in at least two particulars: It shows first, by sign, plus or minus, and second, by percentage amounts, the manner in which the respective series are associated with gross earnings. Let us examine it closely, paying attention first to the sections which show separately the correlative positions of the respective ratios for districts which have gross earnings above and below their respective district levels. Of the 84 ratios, 35 ful- filled the first, and 49 the second condition, the average percentage amounts of deviation being + 5.81 and ~ 4.22, respectively. For the 35 district-ratios of gross earnings to earning assets above their district levels—the average amounts for the seven years, 1919 to 1925, serving as such standards—and which are termed “high,” the net positions of ratios of loans and discounts, of total expense, and of net earnings to earning assets were also high. Moreover, the net position of each of the several expense items in these districts and years was above its seven-year level. On the other hand, for the districts with high gross earnings, the amounts of demand deposits, measured as proportionate parts of total deposits and as percentages of earning assets, were below their levels—that is, they were “low.” Contrariwise, for the 49 district-ratios of gross earnings to earning assets below their dis- trict levels, positions the inverse of those just given obtain for 27 fs oO —-

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