)O 
BANKING STANDARDS 
computed for each district and for all districts, for each year and 
for all years, and the ratios are studied in keeping with the form 
of analysis already described, norms and trends of the character 
indicated obtain. 
(2) The Relation of Total Expense to Gross Earnings 
A. All Member Banks 
Expenses of operation of the banks, by districts, may be ex- 
pressed in terms not only of earning assets but also of gross earn- 
ings—the funds out of which they are paid. This is done for the 
purpose of determining the norms and trends, if any, charac- 
teristic of such ratios as thus expressed. We shall later observe 
the similarities and differences in these respects for two groups of 
banks—national, and state bank and trust company members. At- 
tention is now addressed to the entire bank membership—all 
banks in a given district being treated as a single institution. 
For the period 1919-1925, taken as a unit, all member banks 
paid as operating expenses $69.80 out of each $100 of gross earn- 
ings received. That is, operating expense as a percentage of 
gross earnings was 69.80. The year of highest expense thus 
measured was 1924, the average amount for all members being 
72.00%; that for the lowest year, 1920, was 67.10%. On the 
basis of the seven-year average, the percentage was least, 63.40, 
TABLE 62 
Ratios oF Total EXPENSE To GROSS EARNINGS IN ALL MEMBER 
Banks, FEDERAL RESERVE SYSTEM, BY YEARS AND 
BY FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE DISTRICTS 
Average 
(All Districts) 
Boston. . .... EERE 
New York,  «oooviinnisnnean 
Philadelphia. ............... 
Cleveland...... ............ 
Richmond...... .. ........ 
Atlanta.........e00 cenrenen 
Chicago. .......vveerennnnn. 
5Y LomiSn ¢ 5 su o swim os vere s 2 
MVinneapolis.......ooovvnnnn. 
Kansas City. .......o0cvuen. 
Dallas......... “5g memo B80 
San Francisco. . . 
Ra=r~e or T. ~ 41 FXPENSE' "ROSS FARNINGS 
verage \ | 
1010-1 1919 1020 | 1921 1922 | 1023 | 1024 1028 
1925) 
60.80 ! 67.90 67.10 I 69.30} 69.30 I 70.70 72.00 | 71.60 
39.6¢ 
6.40 
3.40 
9.60 
‘0.40 
1.20 
~.70 
~.60 
+.go 
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3.20 
72.00 
t-3 
vo. 20 
64.2¢ 
$7.60 
69.20 
£5 ar 
re © 
6.8¢ 
35.00 
33.00 
5.50 
7.20 
6.70 
‘9.00 
~7.00 
"7.10 
2.70 
53.70 
.8.30 | 
J§5.7¢ 
66.30 
62.70 
69.40 
72.10 
73.70 
vQ.70 
6¢.8c 
70.10 
75.40 
72.90 
72.80 
Jo IC 
b4.8¢c 
61.50 
69.20 
70.30 
73.20 
39.60 
0.50 
‘0.70 
48.00 
73.20 
72.00 
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ig. 
ie 
69.70 
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. 20 
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64.2 
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70.0¢ 
73.1c 
74.3¢ 
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76. 20 
71.10 
67.70 
65.30 
71.70 
72.70 
70.90 
74.8¢ 
72.60 
80.70 
77.60 
71.00 
nq .60 
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76 10