NORMS AND TRENDS IN NET EARNINGS 129 
CHART 32 
DistriBUTION OF YEARLY DisTrRICT RATIOS OF NET EARNINGS TO 
EARNING ASSETS. AL, MEMBER BANKS, 1010-10925 
Percentage 
Groups 
1.10 and under 1.30 
1.30 and under 1.50 
1.50 and under 1.70 
1.70 and under 1.90 
1.90 and under 2.10 
2.10 and under 2.20 
2.30 and under 2.50 
2.50 and under 2.70 
2 70 and under 2.90 
0 
0) 
Per Cent 
20 
= 
' 
au. 
RW— oes 
oh x he " 
RT 
ae 
25 
30 
Number 
SN 
Cases 
} 
I" 
6 
23 
21 
3 
oy 
scale, shows the ratios of total expense to earning assets; (2) the 
figures in the body of the chart show by position each year (plain 
figures) and for the combined years, 1919-1925 (enclosed figures) 
the ratios of net earnings to earning assets in the different dis- 
tricts—the numbers being those assigned by law to the districts. 
The horizontal line is drawn at the average ratio of gross earn- 
ings to earning assets, and the vertical line at the average ratio 
of operating expense to earning assets, the average in each case 
being that for the combined districts during the period 1919-1925. 
The solid diagonal line indicates a net earnings ratio of 2 %—that 
found for the country for the period 1919-1925. The dotted 
diagonal line above, and the one below the line of 2% serve as 
boundaries for ratios of net earnings ranging from 1.70 to 2.30— 
that is, for those falling within limits 15% above or below the 
average. 
The upper left-hand quarter is the region of high gross earnings 
and high expenses; the upper right-hand one, of low operating 
expenses and of high gross earnings; the lower left one, of low 
gross earnings and of high operating expenses; and the lower right 
one, of low gross earnings and of low operating expenses. The 
area above the solid diagonal line is the region of high, and that