Domestic System

For this purpose, they began to enter into contacts with artisans and workers for the supply of goods. At first, the worker arranged for his own supply of raw materials, tools and place of work. The merchant would come, at fixed intervals, get the manufactured goods and pay. With the great rise in demand for goods, it was no longer possible for the artisan to arrange for supply of raw materials: therefore this task had to be taken up by the merchants. The merchants bought raw materials put them out to workers at their house, and then found a market for the finished products. In this sense, it could will be called the ' Putting-out System'. The artisans still worked in their homes. In the 18 century, there were several new mechnical inventions followed by a great improvement in tools. Some of the tools were beyond the means of the workers and the merchants had to arrange for supply also. Soon a merchant would be getting wok from a number of artisans. It became necessary in due course that the should collect all these workers under one roof and supervise them personally or through his agents. These places of work came to be known as manufactories.  The worker depended upon the employer for supply of materials and tools, but he still worked with his own skill which was his valuable possession. He still had the opportunity of setting up his independent production unit.
With this industry rapidly started to develop.