NORMS AND TRENDS IN GROSS EARNINGS 73 
CHART 13 
DiIsTRIBUTION OF YEARLY DISTRICT RATIOS OF GROss EARNINGS TO 
EARNING Assets. ALL MEMBER BANKS, 1019-1023 
Percentage 
Groups 
5.25 and under 5.75 
5.75 and under 6.25 
6.25 and under 6.75 
5.75 and under 7.25 
7.25 and under 7.75 
7.75 and under 8.25 
3.25 and under 8.75 
B.75 and under 9.25 
3 
Per Cont 
15 
30 
a 
— T— 
25 30 
Number 
of 
Cases 
4 
15 
25 
18 
'4 
3 
Table 51 that the ratios were predominantly low in 1919, 1920, 
1923, 1924, and 1925, and predominantly high in 1921 and 1922. 
To this general rule, in the years which are termed low, Minne- 
apolis in 1919, New York and Richmond in 1920, and Philadel- 
phia, Cleveland, Richmond, and San Francisco in 1924 and 1925, 
are exceptions. In the years which are called high, there are no 
exceptions to the rule, although the percentage amounts by which 
the ratios in the several districts differ from their own seven-year 
average levels, particularly in 1921, vary widely. It appears, 
therefore, that in the matter of gross earnings, years which are 
“poor” or “good” in one district tend to be “poor” or “good” 
in all districts. 
Such a condition is not surprising in view of the fact that from 
87% to 90% of the gross earnings of member banks is received in 
the form of interest, and that interest rates, while varying from 
district to district, reflect economic conditions. Moreover, the 
amount of interest received by a bank or by a group of banks 
depends upon the relative composition of its earning assets, and 
this changed in a more or less uniform way throughout the coun- 
try during this period. Then, too, the “other income” received 
depends largely on the use which is made of current funds. Capi- 
tal represented in such assets is fluid, tending, other things being