ABSTRACT
This chapter explains about the taming of debt. In the nineteenth century there began a movement to make sure that public debt always supplied sufficient productive capacity to generate a means of paying it. As Hudson reports, the movement founded by the Count Claude-Henri de Saint-Simon: created a veritable economic religion based on the credit system's role in planning and allocating the resources of industrial society. The argument that Marx's 'subordination of interest-bearing capital to the conditions and requirements of the capitalist mode of production' has not lasted. The author have suggested that the Saint-Simonian system of industrial credit was one answer to the problem of war debt. Unless production could keep up with the interest on war debts, the latter threatened to push taxpayers in the direction of debt peonage, always owing more than they could pay. Industrial credit could direct credit into fostering production, to ensure that the latter kept up with the growth in sovereign debt.
