This paper deals with the debate involving Bastiat and Proudhon over the legitimacy of the capital income. The first section presents an overview of the French political scenario at the time of the controversy. After that, the economic views of both authors are sketched in light of the liberal and socialist doctrines at the time. The third section introduces Bastiat's and Proudhon's initial contributions with regard to capital and interest concepts. Next, their economic and methodological arguments concerning the nature of a profit orientated society are confronted. The fifth section presents the final discussion over Proudhon's free credit proposal, harshly criticized by Bastiat. As concluding remarks, the effective length of the two protagonists' divergences is evaluated.
interest; capital; private property; cost-free credit