44
BANKING STANDARDS
NuMBER OF YEARS IN WaIcH DISTRICT
RATIOS OF NET EARNINGS TO EARNING
ASSETS, AND OF NET EARNINGS TO
Gross EARNINGS WERE, IN THE
SAME YEARS, ABOVE OR BELOW
THE YEARLY AVERAGES FOR
THE COUNTRY AS A WHOLE,
1010-1925
question for the two measures
should be the same. Yet all of
these facts tend to obtain.
In" summary, the following
generalizations may be made
concerning the amounts and
the percentage changes from
year to year of net earnings,
expressed as percentages of
earning assets and of gross
earnings, for the districts and
years to which this study re-
lates.
Norms
FEDERAL
RESERVE
DisTrRICTE
Boston.... .,..
New York.......
Philadelphia. ....
Nleveland........
ichmond.......
tlanta.........
_hicago.........
5t. Louis. ,......
‘finneapolis......
.ansas City......
allas...........
san Francisco. ...
Both
Above
Doth Ipivided
t. Out of each $100 of gross
earnings, the average net earn-
ings for the period 1910 to 1925 is $30.20, the most common
amounts ranging from $25.00 to $27.50. Relative to earning
assets, net earnings constitute 2%, the bulk of the districts
having ratios falling within the group 1.90 to 2.10.
2. The years in which district ratios of net earnings to gross
earnings were high were 1919, 1920, and 1921; those in which
they were generally low were 1924 and 1925. The years in
which ratios of net earnings to earning assets were high were
1920, 1921, and 1922; those in which they were generally low
were 1019, 1923, 10924, and 1925.
3. In general, if net earnings are high or low in terms of gross
earnings, they are also high or low in terms of earning assets.
4. Based upon the yearly levels for the entire bank member-
ship in the System, districts in which the ratios of net earnings
to gross earnings are high or low are the same as those in which
net earnings, measured in terms of earning assets, are high or low.
Trends
1. The year-to-year trend of net earnings in terms of gross
sarnings is on the whole the same as that of net earnings meas-
ured in terms of earning assets.
