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NORMS AND TRENDS IN GROSS EARNINGS 
I. INTRODUCTION 
THE analysis in the preceding chapters was concerned with 
norms and trends relating to those aspects of bank operation 
which determine, in one way or another, the amounts of gross 
earnings, operating expense, and net earnings. The discussion in 
this chapter relates to the norms and trends in the ratios of gross 
earnings in all member banks by districts and years. Subsequent 
chapters will deal with ratios of operating expense and of net 
earnings. 
The amounts of gross earnings used are those reported in the 
Federal Reserve Bulletin for the years ending June 30, 1919 to 
1925. The earning assets with which these are compared are, as 
in the case of the preceding analysis relating to this item, the 
average amounts for December 31 for the year preceding and for 
June 30 of the year in question! Gross earnings are composed of 
interest and of “other income.” For the years under discussion, 
the total amount is used. It is this which is expressed as a percent- 
age of the earning assets as defined? and used above. It is of in- 
terest to note in passing that for 
the combined districts, for the 
years 1924 and 1923, the ratios 
of the interest item to the total 
grossearnings were, respectively, 
86.65% and 83.70%, the modal 
or common percentages falling 
in the group 87 to go. The dis- 
tribution of the ratios for the 
twelve districts for the two 
years is shown in Table 49. 
1 See, however, note page 13. 
*See page 13. 
TABLE 49