NET EARNINGS IN DISTRICT I 341 
TABLE 197 
DoMINANT FAcTOR IN PRODUCING NET CHANGES IN RATIOS OF NET 
EARNINGS TO EARNING ASSETS, 1924-1925, FOR MEMBER 
Banks. BostoN FEDERAL RESERVE DISTRICT 
Nature of 
Changes in 
Ratios of 
Gross Earnings 
and of 
Total Expense 
0 Earning Assets, 
1024-102% 
_ Both 
increasing 
Both 
Decreasing 
| 
Position of Ratios with Respect to 
Their Averages, 1024 
Gross Earnings | 
to 
Earning Assets 
Total Expense 
to 
Earning Assets 
Above 
Jelow 
Above 
Below 
Above 
Below 
Below 
Above 
Above 
Below 
Above or Below 
Above or Below 
\bove or Below 
ihave or Ralaw 
Above 
RalAaw 
Above 
Below 
ibove 
Below 
Below 
Above 
“bove or Below 
t.ave or Below 
Above 
Below 
Above 
Relow 
\bove or Below 
Above or Below 
Shave 
R alow 
Net Change in 
Ratios of 
Net Earnings 
to 
Earning Assets, 
[024-102% 
Rise 
Rise 
Rise 
Fall® 
Rise 
Rise 
Rise 
Dies 
Fall 
Tall 
Fall 
Fall 
“11 
A 
Al 
~all 
Dominant Factor— 
Ratios to 
Earning Assets 
Gross Earnings 
Gross Earnings 
Gross Earnings 
Gross Earnings 
Gross Earnings 
Total 
Expense 
Gross Earnings 
rose Farninge 
JT0SS Larnink: 
Gross Earnings 
Gross Earnings 
Gross Earnings 
Gross Earnings 
Gross Earnings 
Gross Earnings 
(Gross Earnings 
*Clight. See note. p. 136- 
are the regression tendencies of the gross earnings and of the 
total expense ratios of these same banks, the first being observed 
between 1924 and 1925; and the second, for each pair of years be- 
tween 1922 and 1925. Whether the dominant factor controlling 
the size of ratios of net earnings at a given time or the nature of 
their changes in time would be found to be gross earnings, if other 
periods were under review, is, of course, an open question. No 
data of the types needed are available for this purpose. It is 
of interest, however, to remember that the conclusion stated above 
agrees with that formulated in Chapter XIII,*® in which, with 
respect to district ratios of net earnings for the years 1919-1925, 
it was said that the probable causal order leading to high or to 
low ratios of net earnings runs from gross earnings rather than 
from total expense ratios. 
This discussion closes the analysis of the ratios themselves. To 
summarize briefly the more important conclusions to which it 
43 Pape 228.