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 dispersion
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 average
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.
