In extending credit to a co-partnership some factors enter into the problem which do not appear in the case of a single individual. In order that a partnership may be successful in business it is essential that the different members of the firm should be harmonious in their ideas and actions. Discord is sure to lead to trouble and probable failure, or dissolution. "A house divided against itself cannot stand." The credit of an inharmonious copartnership must necessarily be rated low, and the credit man must decide whether the partnership is one which combines the elements of success, and whether the firm is stronger or weaker than its individual members. It is an old adage in business life that one would do well to "avoid unfortunate men in your business affairs." If a firm is composed of several partners one of whom has hitherto been unsuccessful it diminishes the credit of the firm. We may sympathize with "an unfortunate man" but hesitate to credit him.

Corporations have their advantages and their disadvantages. One of the latter is met with in obtaining credit. For old and well known houses whose credit is established, to incorporate in order to facilitate management of the business or the transfer of interests therein, is perfectly proper and wise, but in the case of new enterprises, the corporation labors under a decided disadvantage. The partners of a firm are severally liable for all debts of the firm to the fullest extent. They are bound during a lifetime, or until released by the statute of limitations, to pay the firm debts, but with a corporation, each shareholder is liable only to the amount of his stock.* Failure of the company cannot involve him beyond this. It is this feature, the non-liability of the individual mem•Each shareholder is liable only to the amount of the par value of his stock, in most of the states, and cannot be proceeded against for corporate liabilities except in case the shares have not been fully paid, In which event the unpaid portion is collectible at law. In Ohio and a few other states shareholders are liable to twice the par value of their stock.

Corporations

Partnership bers of the company, which makes the credit rating of a corporation lower than a partnership under the same conditions. There is no individual character in a corporation upon which credit may be based. It has no moral status. It is a "soulless" creature of the law, limited and bound by legal enactments. As a consequence it is entitled to a lower credit rating than a partnership. Banks and credit men frequently require the personal signature of a responsible officer of the company as a guaranty of its obligations.