28 
BANKING STANDARDS 
TABLE 87 
Ratios oF NET EARNINGS TO Gross EARNINGS IN ALL MEMBER 
Banks, FEDERAL RESERVE SYSTEM, BY YEARS AND 
BY FEDERAL RESERVE DISTRICTS 
FEDERAL RESERVE DISTRICTS 
Average 
(All Districts) 
Boston. . . .. 
New York... . awa gee 
Philadelphia. . .. cow 
Cleveland...... Pp 
Richmond. .... ves 
Atlanta.......... FN 
Chicago. ...v.vvvvvvrenanes 
St.Louis... vveiinenr inne 
Minneapolis......... ....... 
Kansas City. ......covveeen. 
Dallas.......... # ost 8 $ihon » 
San Francisco... eee 
\verat 
I191Q~ 
1925) 
Ramr-= re Nor EARNINGS TO GROSS T wNINGS 
1919 | 1920 | 1021 | 1922 | 3923 1925 
30.20 | 32.10 
22.00 
30.70 ¥ 30.70! 20.30 * 28.00 ' 28.40 
0.40 
3.60 
"6.60 
0.40 
9.60 
“.8 
T.30 
9.40 
0.10 
24.30 
29.80 
26.10 
32.70 
33.80 
35.80 
32.40 
‘0.80 
31.10 
“0 "0 
- 2 
Rr 
££. 
'3.60 
2.80 
13.20 
35.00 
37 20 
© =o 
a 
0 
30 
~0 
34.3 
aif 
age 
3 .60 
2.90 
30 
~9 
20.00 
35.20 
38.50 
30.80 
19.90 
6.80 
20.40 
"2 50 
~ 30 
20 
. bo 
6.10 
27.10 
33.60 
37.30 
31.00 
3¢.30 
2? Ro 
~~ R- 
J7.20 
31.40 
35.80 
27.90 
20.10 
€.90 
- ne 
gn 
a: 
gL 
22.80 
28.90 
32.30 
34.70 
28.30 
17.30 
9.10 
'§.20 
7.40 
19.30 
"2.40 
20.00 
2.40 
2r 
2 
C 
T.40 
22 .Q0 
sL.:0 
«7,20 
banks for the period 1919-1925, inclusive, the average amount 
of net was $30.20. That is, approximately $70 was paid in the 
form of operating expenses, leaving $30 as net earnings. The 
largest net relative to gross earnings, for the membership as a 
whole, was received in 1920, the amount being $32.90; the small- 
est, $28.00, was in 1924. Based upon the entire period as a unit, 
the highest amount $36.60, was received by banks in Philadel- 
hia; the lowest, $20.10 by those in Minneapolis. By districts, 
therefore, there was a range of $16.50; by years, one of $4.90. 
But yearly averages for the respective districts vary widely 
from those for all districts combined, as they do from the seven- 
year average amounts for individual districts. During the seven 
years, the highest yearly ratio, 38.50, occurred in Philadelphia in 
1922; the lowest, 16.10, in Minneapolis in 1923. It is difficult, 
therefore, accurately to represent the ratios by an average. A 
frequency distribution of the 84 ratios will be of assistance in 
visualizing the amounts given in Table 87. 
Such a distribution, as that shown in Chart 35, while it has 
the defect of obliterating yearly and district variations, is help- 
ful in throwing into relief the typical or modal ratios, the range 
over which they extend, and the manner in which they are dis- 
tributed. Specifically, this chart indicates that (1) the most 
common ratios fall in the group 25.00-27.50; (2) the range