134 
BANKING STANDARDS 
CHART 1 
REGRESSION LINES oF CHANGES IN Ratios oF NET EARNINGS TO 
EARNING ASSETS ON RATIOS OF GRoSs EARNINGS AND ON 
RATIOS OF TOTAL EXPENSE TO EARNING ASSETS, 
MEMBER BANKS, BosToN FEDERAL RESERVE 
DistrICT, 1924-1925 
CHANGES IN RATIOS OF TOTAL EXPENSE TO EARNING ASSETS, 1924-1928 
DECREASE NO INCREASE 
(POINTS) CHANGE (POINTS) 
- 0.5 0.0, 0.5 1.0 1.5 
——r - TTT TT TI 
——t ¥ 
Zz 
"wn 
dg 
0 
2 0.0, 
oy 
o- 
-N 
¢ 
r # 
~ 
- n= 
: 
— 
=f 
| 
= 
= 
che 
a 
IN EN 
2B] 
Nel 
20 : 
——— —-— 
v3 0.0 > Lx 
DECREASE NO INCREASE 
(POINTS) CHANGE (POINTS) 
CHANGES IN RATIOS OF GROSS EARNINGS TO EARNING ASSETS, 1924-1925 
® AN=+0.08+40.738 AG 
3 AN = —0.15—0.490 &” 
AN = —0.20+0.766 A 
@ AN=-2.16—0.3002" 
(A) 
(B) 
AN = —1.32}0.769 AG 
tN =—o0.35—0.625 AT 
N= +41.0240.776 AG 
AN = +2.47—0.333 AT 
—~0.04+0.77 AG— Av 
+£0.12 %+0.02 
+1.30—0.46 AT = AN 
+£0.16 +=0.05 
The lines sloping upward to the right are the regression lines of “net on gross”; those sloping downward 
to the right, of “net on total.” The line numbers correspond to the equation numbers beneath the chart 
and to the groups to which they pertain in Table I. The regression equation for each line is shown above. 
The heavy lines are the weighted mean regression lines for the whole experience.