Banking standards under the federal reserve system

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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 IV. Norms, trends, and correlations of series in the Boston and in the New York districts by Member Banks

Collection:: Economics Books

NET EARNINGS IN DISTRICT 1 327 Gross earnings ratios vary;!® they are positively correlated with ratios of total expense,!” and are indifferently correlated with ratios of net earnings.!® Ratios of total expense vary;!? they are positively correlated with ratios of gross earnings,?? and are negatively correlated with ratios of net earnings.?! Ratios of net earnings vary; 22 they are positively correlated with ratios of gross earnings,?® and are negatively correlated with ratios of total expense.?* Knowing these relations to obtain, let us determine the aver- age levels of net earnings ratios in 1924, in 1925, and in the two years combined for the Boston district member banks classified by their positions, in the matter of both gross earnings and of total expense, relative to their average levels. These amounts, given in Table 191, bear out the generalizations just presented respecting the relations of gross earnings and of total expense ratios to those of net earnings. Moreover, they indicate in each year that (1) net earnings ratios are higher when both gross earnings and total expense ratios are relatively low than when they are relatively high; (2) they are highest when ratios of gross earnings are relatively high and those of total expense low; and (3) they are lowest when relations inverse to those just presented for gross earnings and for total expense ratios obtain. While in general it is true, as shown in Table 191, that net earnings ratios tend to be high when gross earnings ratios are high and when total expense ratios are low, and that they tend to be low when inverse conditions obtain, it is also true generally, as shown by the same table, that low ratios of net earnings ac- company high ratios of gross earnings when ratios of total expense are also high, and, conversely, that high ratios of net earnings are found with low ratios of gross earnings when low ratios of total expense accompany them. Accordingly, it is necessary, 16 See Table 156. 17 See Table 159, and Chart 49. 18 See Table 189, and Chart 49. 19 See Table 163. 20 See Table 159 and Chart 49. 21 See Table 190 and Chart 49. ?2 See Table 186. 28 See Table 160 and Chart 49. *% See Table 183 and Chart 49.

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