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 GROSS EARNINGS 213 each of the series. It follows from the above that if ratios of loans and discounts to earning assets are high when ratios of gross earnings are high, ratios of investments to earning assets are low, and vice versa, and that if ratios of demand deposits to total deposits are low when ratios of gross earnings are high, ratios of time deposits to total deposits are high, and vice versa. However, if ratios of demand deposits to earning assets are low when gross earnings ratios are high, it does not follow that ratios of time deposits to earning assets are high. Indeed, they tend to be low when gross earnings ratios are either high or low. Table 131 makes it possible also to determine, for each dis- persion-group of gross earnings ratios, the associated net disper- sion in the other series of data. Not only, for instance, are ratios of loans and discounts high or low, respectively, when gross earn- ings ratios are high or low, but the higher or lower the second, the higher or lower the first. These relations also obtain, in gen- eral, for ratios of total expense, salaries and wages, taxes, “other expense,” and net earnings, each series being expressed in terms of earning assets. In general, therefore, and with respect to ratios of total expense and of net earnings, for example, wherever and whenever— “wherever” relating to separate districts and “whenever,” to separate years—during the years 1919 to 1925, districts had gross earnings which were high or low, they also had total expense and net earnings which were high or low, both positions and amounts, for the series paired with gross earnings, being de- termined algebraically. Moreover, the higher or lower the gross earnings ratios, the higher or lower, respectively, the total expense and net earnings ratios. These relations, of course, do not obtain in every district every year. It is the prevailing tendency which is certain, and to which the summaries in Table 131 point. The details from which the net average percentages of ratios of total expense and of net earnings are drawn are given in Table 132. Both series of data vary directly with gross earnings, the rela- tion being more clearly marked in the case of total expense. The frequencies apply to the twelve districts for each of the seven years 1919-1925. But what is true for the total, as thus built up, tends to be true for the individual years for a single district, and for a single year for individual districts. Both facts are evi- dent from the scatter of the figures in bold type and of the letters

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