NET EARNINGS IN DISTRICT I 333

TABLE 104

AVERAGE NET CHANGE IN RATIOS OF NET EARNINGS TO EARNING As-SETS,
 1924-1925, FOR MEMBER BANKS, BosTON FEDERAL RESERVE
DistrICT, CLASSIFIED BY DIRECTION OF CHANGE AND PosI-TION
 OF RaATios oF Gross EARNINGS TO EARNING
AsseTS, AND BY PosiTioN OF Ratios oF TorAL
EXPENSE TO EARNING ASSETS*

AVERAGE NET CHANGE, 1924-1925, IN RATIOS OF
NET EARNINGS TO EARNING ASSETS

RATIOS:
Gross Earnings
to
Earning Assets

Direction of
Change,
[1024-1028

Position
Relative to the
Average, 1024

Above

f

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

Above

Below

Above or Below

-6

ET

Lr 26

Increasing

Below

Above

Decreasing

Relow

*The ratios which were the same as the averages in the respective series were distributed alternately
ABOVE and BELOW; while the ratios of gross earnings which made no change were counted alternately as
INCREASING and DECREASING. The figures in small type represent the number of banks to which the net
~-hanee applies.

ward when they are decreasing, irrespective of and with respect
to the positions of the ratios of total expense relative to the 1924
average. Similarly, as shown by Table 195, the net year-to-year
changes in net earnings ratios are downward when ratios of total
expense are increasing, but by smaller amounts than when ratios
of gross earnings are decreasing. Indeed, when ratios of total
expense are increasing and ratios of gross earnings are below
their average level—in these positions such ratios tend to increase
from year to year—the net change in ratios of net earnings is
upward. When ratios of total expense are decreasing, ratios of
net earnings tend to increase irrespective of and with respect to
the position of gross earnings ratios, but generally by less amounts