230

BANKING STANDARDS

TABLE 192
AVERAGE NET CHANGE, 1924-1925, IN RATIOS OF NET EARNINGS TG
EARNING ASSETS, FOR MEMBER BANKS, BOSTON FEDERAL RESERVE
DisTrICT, CLASSIFIED BY THE POSITION OF RATIOS OF GROSS
EARNINGS AND OF TOTAL EXPENSE TO EARNING ASSETS,
RELATIVE TO THEIR AVERAGES IN 1Q24%

RATIOS:
Gross Earnings
to
Earning Assets

Position Relative
to the
Average, 1024

Above

Below

Above or Below

ron

2

AVERAGE NET CHANGE, 10924-1925, IN RATIOS OF
NET EARNINGS TO EARNING ASSETS

Ratios: Total Expense to Earning Assets
(Relative to the 1024 Average)

Above

Below

Above or Below

0}

- IT

- 0A

A a

102

4-27

,— TR

+ .22

(22

2&3

+. 10

+ of

: .O0

LW 4

*The ratios which were the same as the averages in the respective series in 1924 were distributed
alternately ABOVE and BELOW. The figures in small type represent the number of banks to which the net
change applies.

ratios noticeably increased. Essentially constant net earnings
ratios in 1924 and 1923 for banks in the former group mean
that the decreases from year to year, characteristic of gross earnings
 and of total expense ratios so placed, canceled each other;
increasing net earnings ratios for those in the second group could
have come about only by ratios of gross earnings increasing more
than those of total expense—types of change from year to year
characterizing ratios below their average levels.
But changes in net earnings ratios between 1924 and 1925 are
functions not only of the positions of gross earnings and of total
expense ratios relative to their own average levels3? and relative
"80 Gee the averages for the respective lines and columns in Table 102.