NORMS AND TRENDS IN EXPENSES 115 
3. The district trends of Philadelphia, Cleveland, and Chicago 
closely agreed with, while those for New York, Dallas, and San 
Francisco markedly differed from, those for the country as a 
whole. 
4. Districts with ratios showing closely similar trends are 
Chicago and Cleveland; and Richmond and Atlanta. Those which 
are unique as to trend are Minneapolis and San Francisco. 
(3) Ratios of Interest and Discounts on Borrowed Money to 
Earning Assets 
Member banks in the Federal Reserve system paid, in the form 
of interest and discounts on borrowed money, $2.92 for each 
$1,000 of earning assets held by them. This figure is an average 
secured by dividing the total money so spent by all member 
banks during the seven years 1919 to 1925 by the aggregate aver- 
age earning assets held by these banks on December 31 of the 
preceding year, and June 30 of the years in question, and multi- 
plying by 1,000. Relatively, it is 24.7% of the amount paid in 
salaries and wages and 14.8% of that paid as interest on deposits. 
It is the smallest single expense item as the items are classified 
by the Board. 
But the amount, $2.92, has all of the limitations of an average 
TABLE 78 
RATIOS OF INTEREST AND DI1scouNTs oN BORROWED MONEY PER 
$1.000 oF EARNING ASSETS IN ALL MEMBER BANKS, 
FEDERAL RESERVE SYSTEM, BY YEARS AND 
BY FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE DISTRICTS 
Average 
(All Dictiricte) 
Boston. . ... 
New York. .. 
Philadelphia. 
Cleveland... 
Richmond. . 
Atlanta...... 
Chicago. .... 
St. Louis. . ... 
Minneapolis. .. . 
Kansas City... Cera 
Dallas. .................... 
San Francisco. . 
RATIOS OF INTEREST AND DISCOUNTS ON BoxrowED MONEY PER $1,000 
nr FARNING ASSres 
‘verage 
1019~ 
102%) 
1010 
1920 
1G%4 
1923 
1933 + 10124 
192§ 
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