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 and crushed down the yeoman farmers and peasants to the status of pauper labourers, had no idea that they were living anything but highly meritorious lives.

Concurrently with this change in Great Britain from traditional patch agriculture and common pasture to large and more scientific agriculture, very great changes were going on in the manufacture of commodities. In these changes Great Britain was, in the eighteenth century, leading the world. Hitherto, throughout the whole course of history from the beginnings of civilization, manufactures, building, and industries generally had been in the hands of craftsmen and small masters who worked in their own houses. They had been organized in guilds, and were mostly their own employers. They formed an essential and permanent middle class. There were capitalists among them, who let out looms and the like, supplied material, and took the finished product, but they were not big capitalists. There had been no rich manufacturers. The rich men of the world before this time had been great landowners or money-lenders and money manipulators or merchants. But in the eighteenth century, workers in certain industries began to be collected together into factories in order to produce things in larger quantities through a systematic division of labour, and the employer, as distinguished from the master worker, began to be a person of importance. Moreover, mechanical invention was producing machines that simplified the manual work of production, and were capable of being driven by water power and presently by steam. In 1765 Watt's steam engine was constructed, a very important date in the history of industrialism.

The cotton industry was one of the first to pass into factory production (originally with water-driven machinery). The woollen industry followed. At the same time iron smelting, which had been restrained hitherto to small methods by the use of charcoal, resorted to coke made from coal, and the coal and iron industries also began to expand. The iron industry shifted from the wooded country of Sussex and Surrey to the coal districts. By 1800 this change-over of industry from a small scale business with small employers to a large scale production under big employers was well in progress. Everywhere there sprang up factories using first water then steam power. It was a change of fundamental