NET EARNINGS IN DISTRICT I 331 
TABLE 193 
AVERAGE NET CHANGE IN RATIOS OF NET EARNINGS TO EARNING As- 
SETS, 1024-1925, FOR MEMBER BANKS, BosTON FEDERAL RESERVE 
DisTrICT, CLASSIFIED BY DIRECTION OF CHANGE IN RATIOS 
oF Gross EARNINGS AND OF TOTAL EXPENSE TO 
EARNING ASSETS, 1924-1925%* 
RATIOS: 
Gross Earnings 
to 
Earning Assets 
Direction of 
Change, 
1024-102¢ 
Increasing 
{10 
AVERAGE NET CHANGE, 1024-1925, IN RATIOS OF 
NET EARNINGS TO EARNING ASSETS 
Ratios: Total Expense to Earning Assets 
{ Direction of Change. 1024-1025) 
Increasing 
Decreasing 
[ncreasing or 
Decreasing 
L 18 
= re 
O07 
Decreasing 
Increasing 
or 
Decreasing 
Me 
r OM 
*The ratios in each series which made no change, 1924 to 1925, were counted alternately as INCREASING 
and DECREASING. The figures in small type represent the number of banks to which the net change applies 
to each other,3! but they are also dependent upon the year-to- 
year changes in these ratios taking place (1) irrespective of the 
levels occupied, and (2) at such levels. Let us consider the net 
year-to-year changes in net earnings ratios under the first con- 
dition named. 
The amounts found in Table 193 indicate that when gross 
earnings ratios increased, the net effect is an increase in ratios 
of net earnings: when they decrease, the net effect is a decrease.?? 
On the other hand, when ratios of total expense increase, those 
of net earnings decrease; and when they decrease, net earnings 
31 See the averages in the respective sections of Table 192. 
82 Gee the averarces of the lines in Table 102.