Leading authorities on the subject of credit place the factors which determine the credit risk in two classes--the _man_ and the _business_. Under the first heading is considered the business morals of the debtor and his ability in, and familiarity with the business in which he is engaged. The second heading--the business--is considered from the financial standpoint, divided as to its assets and liabilities, and the profits or losses made in its operation. But as to the relative importance of the two principal factors--the man and the business--authorities differ. In his valuable contribution to the literature of credits, Mr. E. St. Elmo Lewis takes the stand that the man--his character--should be considered secondary. To quote from Mr. Lewis' book: If goods are the basis of all credit, character of the owner is and should be an after consideration. The very first question any credit man should ask, is, _can_ he pay? The question of a man's ability to pay is becoming of greater ease of solution. The question of the intention or inclination to pay must always be shrouded in the nebulæ of psychological theory. What is the applicant worth? is the crucial test. Then we shall test him by another. What sort of a man is he? Do we buy a law suit when we sell him goods? How much must we add for moral insurance against loss? Character is of vital importance in small concerns; of vital importance in concerns doing a large business on small capital, and it becomes of less importance as we progress into the field of corporations. In direct contrast to this contention are the views of Mr. Ernest Reckitt, as expressed in an address delivered before an organization of bank clerks. After naming the factors to be considered by the banker before extending credit, he said: You will note that in enumerating these factors I place first, and purposely so, "The Man Himself," and I believe I am correct in stating that bankers are now placing more stress upon this point than ever before. The man of good character and intelligence, who is full of energy and perseverance, will not find it difficult to obtain a reasonable line of credit with his bankers, while the man who is deficient in those qualities, whatever his reputed wealth may be, will be looked upon with suspicion. It therefore behooves you to become students of human character as well as students of banking, if you are to fill the highest positions within your reach.