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 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 I 339 ter—the dots, of course, are all above the line; that is, in the area of increasing net earnings ratios. It is of interest to observe, however, that the dots tend to be distributed over a wider range vertically than horizontally, this fact indicating that the increases in net earnings ratios are generally more dependent upon changes in the gross earnings ratios than upon those of total expense. A similar distribution of the dots in the lower left-hand quarter obtains. The banks here represented had decreasing ratios of net earnings, inasmuch as gross earnings ratios were decreasing and ratios of total expense were increasing. The alignment, how- ever, shows that the fall is primarily to be attributed to the de- creases in gross earnings ratios. When gross earnings and total expense ratios are both increas- ing, the dots are predominantly to the right of the area of no- change in net earnings; that is, net earnings ratios tended to increase, this condition being primarily due to the greater changes in gross earnings. On the other hand, when both ratios are de- creasing, a majority of the dots are to the left of the no-change area of net earnings; that is, net earnings ratios tended to de- crease, a condition brought about by relatively greater changes in gross earnings than in total expense ratios. If the net changes in net earnings ratios are determined when changes in the ratios in one series are paired with the positions in the other, relative to the 1924 average, the following results, under conditions making for increases and for decreases, respec- tively, in net earnings ratios, are obtained. ConDITIONS MAKING FOR INCREASES IN NET EARNINGS RATIOS Ratios Gross Earnings Total Expense Gross Earnings Total Expense Gross Earnings Total Expense Gross Earnings Total Expense Nature of Change ncreasing Decreasing ‘ncreasing Decreasing (ncreasing Decreasing Increasing Decreasing, Position Above A hove ibove Above Below Below Below Below Ratios Total Expense (Gross Earnings Total Expense Gross Earnings Total Expense Gross Earnings Total Expense Gross Earnings Position Above Above | Below Relow Above Above Below | Relow Net Change in Net Farnings 26 4.10 +.27 + +9* + .41t +.20% +.37 +.132 *4For exclanation of these signs and amounts. see Appendix I, page 387. Cases 2 and 3, respectively.

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