274 
BANKING STANDARDS 
group ratios to increase between 1924 and 1925, as shown in 
Table 1535, is not true of all the individual banks. Relative to 
the average in the first and in the second year, the ratios are 
widely dispersed, but in summarizing, bank by bank, the dis- 
persion in the two years it is seen that it is the ratios which 
are above the average in the first year which decrease (approach 
the average in the second year) and it is those which are below 
the average in the first year which increase’ (approach the aver- 
age in the second year). Forces are seemingly at work tending 
to establish an equilibrium or normal ratio of gross earnings to 
earning assets. 
But, as indicated in Table 155, each group of banks, as there 
classified, has its own average ratio of gross earnings to earning 
assets, the ratios, as already noted, tending generally to decrease 
as cities and volumes increase in size. Accordingly, if the yearly 
averages for the respective volume groups are taken as points of 
reference from which to measure variation, and if the deviations 
are treated in the same way as were those taken from the aver- 
TABLE 157 
CoMPARATIVE MEASURES OF REGRESSION TO TYPE FOR RATIOS OF GROSS 
EARNINGS To EARNING AsseETs, MEMBER Banks, BosToN 
FEDERAL RESERVE DISTRICT, 1924-1925 
(Percentage Differences from three different averages.) 
DIFFERENCES 
PERCENTAGE DIFFERENCES: 
(First Year of the 
Pair of Years) 
Position 1 
Groups 
Average 
Above 
40 and over 
30 and under 40 
20 and under 30 
to and under zo 
Mondor 
i 
Below 
Under 10 
10 and under 20 
20 and under 30 
30 and under 40 
1 and aver 
LA Veraoce 
Yearly Averages 
of All Banks 
Number 
Second 
year 
less than 
First 
am 
” 
I 
4a 
5 
- 
9 
+ 6.9 
5 
1 6 
Yearly Averages 
of Citv-Grouns 
Number 
Second 
year 
less than 
First 
AY 
- 
oO 
—30.0 | 
—I10.0 
—12.% 
— 4 
9 
39 
Tr ~ 
+ v.06 
+ 4.7 
+ 7.3 
- 
+ 2.7 
Yearly Averages 
of Volime-Groups 
| Second 
year 
| less than 
First 
vear* 
Number 
TAR 
-_— a 8 
4 
4 
9 
a7 
—20.0 
= 7.5 
—I11.X 
— 7.0 
—- 
169 
[3 
T4 
+ 1.0 
+ 5.1 
+ 7.1 
242 
+ 2.2 
*The signs relate to the prevailing changes in the ratios themselves compared with the averages in the 
first and the second years, minus (~) indicating that the ratios decrease, and plus (4) that theyincrease.