NORMS AND TRENDS IN NET EARNINGS 147
TABLE 93
Ratios oF NET EARNINGS TO GROSS EARNINGS IN STATE BANKS,
FEDERAL RESERVE SYSTEM, BY YEARS AND
BY FEDERAL RESERVE DISTRICTS
FEDERAL RESERVE DISTRICTS
Boston. ...
New York. ..
Philadelphia.
Cleveland...
Richmond.
Atlanta.....
Chicago. ...
St. Louis. . ..
Minneapolis.
Kansas City.
Dallas. ......
San Francisco. .
Average
(All Districts)
Averag
(1910-102%)
20.04
.0¢
18
"lg
£1. 1.
16-0
Ratios NET FARNINGE TO Gross EARNINGS
[ 1025
k {ol 1 od
al
20 &r
20.68
. 28 ea
26.04
27.46
25.46
31.26
5. .20
26.63
27.00
an ~~
a
3
3
3¢
”
z
4
-
ad
27.97
1. vg
25.02
32.07
37.87
30.12
+
24.00
20.4
37 °°
2F ar
~
* £
20.
N
1G.
1
TH
2.
20.16
fall in the group 27.50-30.00 and for the state banks in the group
25.00-27.50. That is, there is a difference of 2 points—an amount
somewhat larger than that indicated by the difference between
the seven-year averages for the two groups in the entire System.
Accordingly, it is of interest to observe both the ranges and the
groupings for the two types of institutions.
The minimum and the maximum ratios for the state members
extend beyond those for the national institutions. Moreover,
within the respective ranges, the nature of the grouping
is different. For the state banks the area of concentration extends
from 25.00 to 32.50; for the national banks from 25.00 to 37.50.
There are relatively more low and relatively fewer high ratios
for state than for national banks. Accordingly, not only the
average ratio but also the prevailing ratios of net earnings to gross
earnings is higher for national than for state banks—‘“bank,” it
should be remembered, being the abbreviated term used for all
of the respective member banks of the class in question in an
entire district.
So much for the size of the ratios. How about the rates of
change from year to year and over the whole period 1919-1925
of the ratios for the two kinds of institutions? The rates are
graphically shown in Chart 37, which is drawn on a ratio basis.
It is difficult briefly to summarize the various facts disclosed
by this chart, and only those most clearly indicated will be
