72 
BANKING STANDARDS 
2. THE RELATION OF GROSS EARNINGS TO EARNING ASSETS 
For the combined twelve districts for the years 1919-1925, in- 
clusive, gross earnings constituted 6.58% of earning assets. The 
lowest ratio for the combined districts was 6.00% for 1919; the 
highest, 7.33% for 1921. For the combined years, the lowest 
ratio, 6.08, is that for Boston; the highest, 7.92, for Dallas. Dif- 
ferences characterize the respective years and districts, as shown 
in Table 50, the ratios ranging from 5.44 to 8.85. 
TABLE 50 
RATIOS OF GROSS EARNINGS To EARNING ASSETS IN ALL MEMBER 
Banks, FEDERAL RESERVE SYSTEM, BY YEARS AND 
BY FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE DisTrICTS 
Boston........ Chee 
New York... ve 
Philadelphia. . ae 
Cleveland... . ‘e 
Richmond. . . ve 
Atlanta....... . 
Chicago....... . 
“t. Louis. ...... is us 
Vinneapolis........o.00entn 
Tansas City..... ......-.. 
Dallas. .........coviivinnnn 
San Francisco. ......... 
Average 
(All Districts) 
\verag 
1010- | 
1925) 
Ta op £7 nt FAPNINGS TO FTARNING ASSETS : 
1021 | 1922 | 1923 | 1024 i 1025 
6.58' 6.00! 6.451 7.33} 6.971 6.421 6.501 6.37 
an 
+e 
3.6 
Lag 
L wn 
ras 
re 
e- 
( 
Lek 
6.3: 
re. 
Is 
pe 
ra 
ay 
04 
L.49 
90 
¢.08 
6.12 
3.53 
ol 
” 
o 
LC.aY 
6.30 
6.67 
6.44 
7.27 
Su 
6.5 
6.78 
"49 
“na 
7.0rI 
6.058 
£.89 
6.21 
6.77 
6.45 
7.12 
6.2 
6.50 
6.52 
7.40 
| 7.86 
6.97 
).04A 
If the period 1919-1925 is taken as a unit and if the gross 
earnings ratios by years and by districts are classified in fre- 
quency form, as is done in Chart 15, it is found that the common 
or modal amounts fall in the group 6.25-6.75, and that the form 
of the distribution approaches the normal type. Inspection of 
Table 50, however; shows a correlation between the location of the 
districts and the ratios of gross earnings. Accordingly, when the 
ratios for the different years and districts are grouped, as in Chart 
15, the eastern districts, generally, fall in the lower, and the west- 
ern in the higher groups. Account is taken of this fact in the 
following analysis. 
If the average ratio in each district for the combined years 
1919-1923, inclusive, is taken as a standard from which to de- 
termine the dispersion of the ratios each year, it is found from