334

BANKING STANDARDS

TABLE 195
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 RATIOS OF TOTAL EXPENSE TO EARNING
ASSETS, AND BY POSITION OF RATIOS OF
Gross EARNINGS TO EARNING ASSETS¥*

Ratios:
Total Expense
to
Earning Assets

AVERAGE NET CHANGE IN RATIOS OF NET
EARNINGS TO EARNING ASSETS

RATIOS: Gross Earnings to Earning Assets
(Relative to the 1024 Average)

Direction of
Change,
[024-102€

Increasing

Decreasing

Position
Relative to the
Average, 1024

Above

Below

Above

Below

Above

—_ 16

54

—.3%
20

+.10
75

+ 20

Below

-

+ 24

.Q7

'.29
40

4.22

Above or Below

88

- OI

—.07
IIL

+.17
124

4 28

Kc

*The ratios which were the same as the averages in the respective series were distributed alternately
ABOVE and BELow; while the ratios of total expense which made no change were counted alternately as
org snie 2nd DECREASING. The figures in small type represent the number of banks to which the net
change applies.

than occur when gross earnings are increasing and ratios of total
expense are differently placed with respect to their 1924 average.
That is, in general, increasing ratios of gross earnings increase
net earnings ratios more than do decreasing ratios of total expense;®
 and decreasing ratios of gross earnings reduce them
more than do increasing ratios of total expense.
In Tables 194 and 195, account is taken of increases and of
decreases in gross earnings and in total expense ratios separately,
the paired series in the respective comparisons being classified by
10 Compare the amounts in the lines of the upper section of Table 194 with
those in the lines of the lower section of Table 195.
41 Compare the amounts in the lines of the lower section of Table 194 with
those in the lines of the upper section of Table 195.