DEVELOPMENT OF MANUFACTURE 299 



These conditions are still typical of India, as 

 they were of Europe in mediaeval days. When 

 landlords conceived a desire for manufactured 

 luxuries they gratified it by reducing their 

 personal establishments. Labour was diverted to 

 handicrafts, and the industrial era began. 



Industry stimulates industry. The making of 

 shoes incites men to buy them, and to make other 

 things in order to produce funds for the purchase. 

 Each new handicraft, then, created others. This 

 interaction is an accumulating force, and rapidly 

 extended the field of industry. 



Handicrafts gave place to machinery. By 

 harnessing the energy of coal with himself, man 

 augmented immensely the effectiveness of his 

 labour. With the assistance of a machine, a few 

 factory hands are as effective as scores of handi- 

 craftsmen. Not only was the output largely 

 increased. Prices were lowered, and cheapness, 

 as we have seen, has a potent effect in increasing 

 demand. With each diminution of price the 

 market widened : by lowering prices a factory 

 encouraged the establishment of other factories. 

 The economic conditions of the present day are 

 based almost wholly upon the use of machines. 



There followed the organization of factory 

 industry, and a development of skill in manage- 

 ment, engineering, prospecting, and in reading 

 the market, without which production on a large 

 scale would be impossible. A growing alertness 

 guided invention, and secured the prompt utiliza- 

 tion of its discoveries. And labour became more 

 effective as, with the spread of knowledge, it 

 became more intelligent. 



Manufacture is supported by purchases, and 

 purchases are vastly stimulated by temptation. 

 Our eyes are everywhere assailed by advertise- 

 ments, which have indeed become a feature not 



