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 average
 earning assets held by these banks on December 31 of the
preceding year, and June 30 of the years in question, and multiplying
 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§

2 02

2.40

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