388

BANKING STANDARDS

the increases are not large enough to predominate over the strong
constant tendency for net earnings to increase.

It is thus apparent, from a consideration of the preceding five
cases, that they are explainable principally in terms of the constant,
 as distinguished from the variable, part of the changes in
net earnings ratios of banks. These constant tendencies are reflected
 by the values of the terms K; and K, for the various
groups.