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 negative
 (-) positions, there is one exception for the group arrangement,

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