312

BANKING STANDARDS

Table 184 summarizes the results secured from pairing ratios
of gross earnings and of net earnings with ratios of total expense,
the former being the dependent variables and the latter the independent
 variable.
From the foregoing presentations it is patent that, on the
average and in general, banks can increase their net earnings
by increasing their gross earnings, provided their total expenses
are not increased. But as a general rule, such increases take
place. Similarly, they may increase them by decreasing their
total expense if they do not decrease their gross earnings. But
as a general rule, such decreases occur. Accordingly, which process—to
 increase gross earnings or to decrease expenses—seems
to offer the better chance of gaining the desired result? An answer
to this question is given in Chapter XVII.