All through Europe these customs prevailed and, indeed, in some parts of America exist to the present day. We see survivals of these customs which formerly were permanent, in the people who go from house to house performing certain types of work or bringing certain kinds of goods for sale, and, indeed, in the small shop of modern times where goods are repaired or manufactured. They represent customs which now are irregular, but which formerly were permanent methods. It was a simple system, requiring no capital, no undertaker or manager, no middleman. Gradually these customs were replaced by many varied methods, such as the establishment of the laborer in his individual shop, who at first only made the raw material, which people brought him, into the finished product; later he was required to provide his own raw material, taking orders for certain classes of goods.
After the handcraft system was well established, there was a division between the manufacturer of goods and those who produced the raw material, a marked distinction in the division of labor. The expansion of systems of industry developed the towns and town life, and as the manor had been self-sufficient in the manufacture of goods, so now the town becomes the unit of production, and independent town economy springs up. Later we find the towns beginning to trade with each other, and with this expanded industry the division of labor came about and the separation of laborers into classes. First, the merchant and the manufacturer were united. It was common for the manufacturer of goods to have his shop in his own home and, after he had made the goods, to put them on the shelf until called for by customers. Later he had systems of distribution and trade with people in the immediate locality. Soon weavers, spinners, bricklayers, packers, tanners, and other classes became distinctive. It was some time before manufacturers and traders, however, became separate groups, and a longer time before the manufacturer was separated from the merchant, because the manufacturer must market his own goods. Industries by degrees thus became specialized, and trades became clearly defined in their scope. This led, of course, to a distinct division of occupation, and later to a division of labor within the occupation. The introduction of money after the development of town economy brought about the wage system, whereby people were paid in money rather than kind. This was a great step forward in facilitating trade and industry.
One of the earliest methods of developing organized industrial society was through the various guilds of the Middle Ages. They represented the organization of the industries of a given town, with the purpose of establishing a monopoly in trade of certain kinds of goods, and secondarily to develop fraternal organization, association, and co-operation among groups of people engaged in the same industry. Perhaps it should be mentioned that the first in order of development of the guilds was known as the "guild-merchant," which was an organization of all of the inhabitants of the town engaged in trading or selling. This was a town monopoly of certain forms of industry controlled by the members of that industry. It partook of the nature of monopoly of trade, and had a vast deal to do with the social organization of the town. Its power was exercised in the place of more systematic political town government. However, after the political town government became more thoroughly established, the guild-merchant declined, but following the decline of the guild-merchant, the craft guild developed, which was an organization of all of the manufacturers and traders in a given craft. This seemed to herald the coming of the trade-union after the industrial machinery of society had made a number of changes. English industrial society became finally completely dominated, as did societies in countries on the Continent, by the craft guilds.
All the payments in the handcraft system were at first in kind. When the laborer had finished his piece of goods, his pay consisted in taking a certain part of what he had created in the day or the week. Also, when he worked by the day he received his pay in kind. This system prevailed until money became sufficiently plentiful to enable the payment of wages for piecework and by the day. The payment in kind, of course, was a very clumsy and wasteful method of carrying on industry. Many methods of payment in kind prevailed for centuries, even down to recent times in America. Before the great flour-mills were developed, the farmer took his wheat to the mill, out of which the miller took a certain percentage for toll in payment for grinding. The farmer took the remainder home with him in the form of flour. So, too, we have in agriculture the working of land on shares, a certain percentage of the crops going to the owner and the remainder to the tiller of the soil. Fruit is frequently picked on shares, which is nothing more than payment for services in kind.
The Beginnings of Trade.—While these simple changes were slowly taking place in the towns and villages of Europe, there were larger movements of trade being developed, not only between local towns, but between the towns of one country and those of another, which led later to international trade and commerce. Formerly trade had become of world importance in the early Byzantine trade with the Orient and Phoenicia. After the crusades, the trade of the Italian cities with the Orient and northwest Europe was of tremendous importance.[[1]] In connection with this, the establishment of the Hanseatic League, of which Hamburg was a centre, developed trade between the east and the west and the south. These three great mediaeval trade movements represent powerful agencies in the development of Europe. They carried with them an exchange of goods and an exchange of ideas as well. This interchange stimulated thought and industrial activity throughout Europe.
Expansion of Trade and Transportation.—The great discoveries in the fifteenth and sixteenth centuries had a vast deal to do with the expansion of trade. The discovery of America, the establishment of routes to the Philippines around South America and to India around South Africa opened up wide vistas, not only for exploration but for the exchange of goods. Also, this brought about national trade, and with it national competition. From this time on the struggle for the supremacy of the sea was as important as the struggle of the various nations for extended territory. Portugal, the Netherlands, England, and Spain were competing especially for the trade routes of the world. France and England were drawn into sharp competition because of the expansion of English trade and commerce. Portugal became a great emporium for the distribution of Oriental goods after she became a maritime power, with a commercial supremacy in India and China. Subsequently she declined and was forced to unite with Spain, and even after she obtained her freedom, in the seventeenth century, her war with the Netherlands caused her to lose commercial supremacy.
The rise of the Dutch put the Netherlands to the front and Antwerp and Amsterdam became the centres of trade for the Orient. Dutch trade continued to lead the world until the formation of the English East and West India companies, which, with their powerful monopoly on trade, brought England to the front. Under the monopolies of these great companies and other private monopolies, England forged ahead in trade and commerce. But the private monopolies became so powerful that Cromwell, by the celebrated Navigation Acts of 1651, made a gigantic trade monopoly of the English nation. The development of agricultural products and manufactures in England, together with her immense carrying trade, made her mistress of the seas. The results of this trade development were to bring the products of every clime in exchange for the manufactured goods of Europe, and to bring about a change of ideas which stimulated thought and life, not only in material lines but along educational and spiritual lines as well.
Invention and Discoveries.—One of the most remarkable eras of progress in the whole range of modern civilization appeared at the close of the eighteenth century and the beginning of the nineteenth, especially in England. The expanded trade and commerce of England had made such a demand for economic goods that it stimulated invention of new processes of production. The spinning of yarn became an important industry. It was a slow process, and could not supply the weavers so that they could keep their looms in operation. Moreover, Kay introduced what is known as the drop-box and flying shuttle in 1738, which favored weaving to the detriment of spinning, making the trouble worse.
In the extremity of trade the Royal Society offered a prize to any person who would invent a machine to spin a number of threads at the same time. As a result of this demand, James Hargreaves in 1764 invented the spinning-jenny, which was followed by Arkwright's invention of spinning by rollers, which was patented in 1769. Combining Arkwright's and Hargreaves's inventions, Crompton in 1779 invented the spinning-"mule." This quickened the process of spinning and greatly increased the production of the weavers. But one necessity satisfied leads to another in invention, and Cartwright's powerloom, which was introduced in 1784, came into general use at the beginning of the nineteenth century.
During this period America had become a producer of cotton, and Eli Whitney's cotton-gin, invented in 1792, which separated the seeds from the cotton fibre in the boll, greatly stimulated the production of cotton in the United States. In the meanwhile the steam-engine, which had been perfected in 1769, was applied to power manufacture in 1785 by James Watt. This was the final stroke that completed the power manufacture of cotton and woollen goods.