86 
BANKING STANDARDS 
cated the opposite condition to be true. It was shown in Table 
53 that relatively more ratios decreased when they were already 
low than increased when they were already high, and this again 
appears to be in keeping with the results to be expected. 
But what are the percentage amounts of change from year to 
year for district ratios positively and negatively placed in the first 
of each pair of years with respect to the level of the district to 
which they belong? While the directions of change tend to vary 
inversely, the net percentage amounts of change vary directly with 
the positions occupied. This fact is shown quantitatively in 
Table 60. Not only are the directions of change downward for 
ratios which are above the average and upward for those which 
are below, but the net percentage amounts of change increase 
with the percentage amounts of dispersion. Over the whole range 
of percentages and from group to group, this condition obtains 
for ratios holding positive (+4) positions; for those with nega- 
tive (-) positions, there is one exception for the group arrange- 
ment, 
There is regression to type in the case of operating expenses as 
there is in the case of gross earnings. Operating expenses are 
subject to administrative control, the effort of management being 
to reduce them, and the effect of competition relating to salaries 
TABLE 60 
COMPARATIVE PERCENTAGE AMOUNTS OF DEVIATION FROM DISTRICT 
LEVELS AND NET YEAR-TO-YEAR CHANGE IN RATIOS OF 
ToTAL EXPENSE TO EARNING ASSETS 
DIFFERENCES FROM DISTRICT AVERAGES, 1019-1925 
Sign 
Number of 
Cases 
Percentage 
Groups 
Average 
Percentage 
20 
Average 
5.54 
2A 
10.00 and over 
5.00 to 10.00 
Under =.0co 
I 61 
« . IO 
2.68 
In 
II 
Under 5.00 
5.00 to 10.00 
10.00 and over 
1.21 
7.50 
12.54 
33 
Average 
” 
NET PERCENTAGE 
CHANGE FROM 
YEAR TO YEAR 
— 3.06 
-— 6.96 
5.00 
- 1.53 
+ 4 4 
+13.62 
+ 9.76 
+ 8.06