NORMS AND TRENDS IN EXPENSES 9
TABLE 68
Ratios oF Total EXPENSE TO Gross EARNINGS IN NATIONAL
BANKS, FEDERAL RESERVE SYSTEM, BY YEARS AND
BY FEDERAL RESERVE DISTRICTS
Rr=ne nr Tomar. Ry—wree~ ~~ goss WARNINGS
FEDERAL RESERVE DISTRICTS
I ——
Average
(All Districts)
Boston. ...
New York. .
Philadelph?
Cleveland.
Richmond.
Atlanta...
Chicago...
St. Louis...
Minneapolis.
Kansas City.
Dallas........
San Francisco.
Averag-
(x19190-
1025)
60.12
97. &
pe =a
yy
re
10.74
1010
1920
1021
67.04 | 66.40 ' 60.0%
20 q
04.79
64 ~7
¢° ~¢
£ -
04.24
62 s&
‘99
64.16
66.42
f= 3p
1922
: 68 6o
87.84
3.64
6r =~
F
192]
70.20
6
rc
& ©
1024
LA
a
6.
ar
I07,
71.06
2,
g
6
~
78.2¢
1925, inclusive, they paid $60.12 in the form of total expense.
The corresponding amount paid by state bank and trust company
members was $70.96. The year of cheapest operation for both
classes of banks was 1920, the average ratios of total expense
to gross earnings for national banks being 66.40, and for state
banks and trust companies, 68.51. For the seven-year period,
the lowest district ratio for national banks, 63.84, was in Phila-
delphia; the highest, 79.59, was in Minneapolis. For the same
period, for state banks,!! Philadelphia had the lowest ratio, 62.10,
and Minneapolis the highest, 82.49.
The foregoing paragraph and Tables 68 and 69 show that the
ratios differ as between the two groups of banks, and within the
same group depending upon the averages that are used. If yearly
district ratios are taken as the bases of comparison, the variations
are numerous, a casual inspection of the amounts showing little
or no uniformity or consistency among them. Before reducing
them to orderly form, however, it will be helpful to arrange them
in frequency form from which, by inspection, the range, grouping,
and concentration can be seen. This is done in Chart 20, uniform
groupings being used for the two types of member banks.
The ratios for national banks range from the group 60.00-62.50
to the group 80.00 and over; those for state banks, from 57.50-
" 11uGtate banks” will hereafter be used as a substitute for the longer expression
“State bank and trust company members.”
