nt, 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 {434}
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