NORMS AND TRENDS IN EARNING ASSETS 15
year; and (3) the positions occupied by member banks in each
district relative to those for all districts combined. We are also
interested in the relations between changes in the relative composition
 of the earning assets and other conditions of bank operation,
 but this problem will receive attention later. It is the former
matter with which the present discussion is concerned.

2. THE COMPOSITION OF EARNING ASSETS

(1) Ratios of Loans and Discounts to Earning Assets

If the ratios of loans and discounts* to earning assets for all
member banks, by districts and by years, 1919 to 1925, are assembled
 into a single table, as is done in Table 3, considerable
variation in the ratios is apparent. There are differences from
year to year for each district, and from district to district for each
year. Are there any consistencies or tendencies observable in the
data? If the 84 ratios—7 for each of the twelve districts—are
classified into frequency groups, as is done in Chart 1, a mode
appears at 76% to 80%. Twenty-five per cent of all the ratios
fall in this group. Relatively more fall below than above it, the dis-TABLE

 3

RaT10S OF LoANS AND Discounts To EARNING ASSETS IN ALL
MEMBER Banks, FEDERAL RESERVE SYSTEM, BY YEARS
AND BY FEDERAL RESERVE DISTRICTS

R aTIOR ne T.aane AND DISCOUNTS TO FARNING ASSETS

FrpeEratr RESERVE DISTRICTS

Average
(All Districts)

Boston. .....
New York. .
Philadelphia.
Cleveland...
Richmond. .
Atlanta.....
“hicago. ...
St. Louis. . ..
Minneapolis...
Kansas City. .
Dallas. ........
San Francisen

.

\verage
(1919-1025)


72.00

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1919 !

60.32

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10.08
7.59
1.66
79.14
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1920 1021 | 1922 1023

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¢ Hereafter, when the term “loans and discounts” is used it is intended to mean
*loans, discounts, and overdrafts.”