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-toyear
 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 condition
 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.