[…]  From the first there follows the premise of a highly developed division of labour and an extensive commerce. In the first case the individuals must be brought together; in the second they find themselves as instruments of production. Here, therefore, arises the difference between natural instruments of production and those created by civilisation. The field (water, etc.) can be regarded as a natural instrument of production. In the first case, that of the natural instrument of production, individuals are subservient to nature; in the second, to a product of labour. In the first case, therefore, property (landed property) appears as direct natural domination, in the second, as domination of labour, particularly of accumulated labour, capital. The first case presupposes that the individuals are united by some bond: family, tribe, the land itself, etc.; the second, that they are independent of one another and are only held together by exchange. It is predominantly an exchange of men among themselves. In the first case, average, human common sense is adequate — physical activity is as yet not separated from mental activity; in the second, the division between physical and mental labour must already be practically completed. In the first case, the domination of the proprietor over the property less may be based on a personal relationship, on a kind of community; in the second, it must have taken on a material shape in a third party – money. Small industry exists, but determined by the utilisation of the natural instrument of production and therefore without the distribution of labour among various individuals; in the second, industry exists only in and through the division of labour.
[2. The Division of Material and Mental Labour.
Separation of Town and Country, The Guild System]
The greatest division of material and mental labour is the separation of town and country. The antagonism between town and country begins with the transition from barbarism to civilisation, from tribe to State, from locality to nation, and runs through the whole history of civilisation to the present day (the Anti-Corn Law League).
The existence of the town implies, at the same time, the necessity of administration, police, taxes, etc.; in short, of the municipality, and thus of politics in general. Here first became manifest the division of the population into two great classes, which is directly based on the division of labour and on the instruments of production. The town already is in actual fact the concentration of the population, of the instruments of production, of capital, of pleasures, of needs, while the country demonstrates just the opposite fact, isolation and separation. The antagonism between town and country can only exist within the framework of private property. It is the most crass expression of the subjection of the individual under the division of labour, under a definite activity forced upon him — a subjection which makes one man into a restricted town-animal, the other into a restricted country-animal, and daily creates anew the conflict between their interests. Labour is here again the chief thing, power over individuals, and as long as the latter exists, private property must exist. The abolition of the antagonism between town and country is one of the first conditions of communal life, a condition which again depends on a mass of material premises and which cannot be fulfilled by the mere will, as anyone can see at the first glance. (These conditions have still to be enumerated.) The separation of town and country can also be understood as the separation of capital and landed property, as the beginning of the existence and development of capital independent of landed property — the beginning of property having its basis only in labour and exchange.
In the towns which, in the Middle Ages, did not derive ready-made from an earlier period but were formed anew by the serfs who had become free, each man’s own particular labour was his only property apart from the small capital he brought with him, consisting almost solely of the most necessary tools of his craft. The competition of serfs constantly escaping into the town, the constant war of the country against the towns and thus the necessity of an organised municipal military force, the bond of common ownership in a particular kind of labour, the necessity of common buildings for the sale of their wares at a time when craftsmen were also traders, and the consequent exclusion of the unauthorised from these buildings, the conflict among the interests of the various crafts, the necessity of protecting their laboriously acquired skill, and the feudal organisation of the whole of the country: these were the causes of the union of the workers of each craft in guilds. We have not at this point to go further into the manifold modifications of the guild-system, which arise through later historical developments. The flight of the serfs into the towns went on without interruption right through the Middle Ages. These serfs, persecuted by their lords in the country, came separately into the towns, where they found an organised community, against which they were powerless and in which they had to subject themselves to the station assigned to them by the demand for their labour and the interest of their organised urban competitors. These workers, entering separately, were never able to attain to any power, since, if their labour was of the guild type which had to be learned, the guild-masters bent them to their will and organised them according to their interest; or if their labour was not such as had to be learned, and therefore not of the guild type, they became day-labourers and never managed to organise, remaining an unorganised rabble. The need for day-labourers in the towns created the rabble.
These towns were true “associations”, called forth by the direct need, the care of providing for the protection of property, and of multiplying the means of production and defence of the separate members. The rabble of these towns was devoid of any power, composed as it was of individuals strange to one another who had entered separately, and who stood unorganised over against an organised power, armed for war, and jealously watching over them. The journeymen and apprentices were organised in each craft as it best suited the interest of the masters. The patriarchal relationship existing between them and their masters gave the latter a double power — on the one hand because of their influence on the whole life of the journeymen, and on the other because, for the journeymen who worked with the same master, it was a real bond which held them together against the journeymen of other masters and separated them from these. And finally, the journeymen were bound to the existing order by their simple interest in becoming masters themselves. While, therefore, the rabble at least carried out revolts against the whole municipal order, revolts which remained completely ineffective because of their powerlessness, the journeymen never got further than small acts of insubordination within separate guilds, such as belong to the very nature of the guild-system. The great risings of the Middle Ages all radiated from the country, but equally remained totally ineffective because of the isolation and consequent crudity of the peasants.
In the towns, the division of labour between the individual guilds was as yet [quite naturally derived] and, in the guilds themselves, not at all developed between the individual workers. Every workman had to be versed in a whole round of tasks, had to be able to make everything that was to be made with his tools. The limited commerce and the scanty communication between the individual towns, the lack of population and the narrow needs did not allow of a higher division of labour, and therefore every man who wished to become a master had to be proficient in the whole of his craft. Thus there is found with medieval craftsmen an interest in their special work and in proficiency in it, which was capable of rising to a narrow artistic sense. For this very reason, however, every medieval craftsman was completely absorbed in his work, to which he had a contented, slavish relationship, and to which he was subjected to a far greater extent than the modern worker, whose work is a matter of indifference to him.
Capital in these towns was a naturally derived capital, consisting of a house, the tools of the craft, and the natural, hereditary customers; and not being realisable, on account of the backwardness of commerce and the lack of circulation, it descended from father to son. Unlike modern capital, which can be assessed in money and which may be indifferently invested in this thing or that, this capital was directly connected with the particular work of the owner, inseparable from it and to this extent estate capital.
Further Division of Labour
The next extension of the division of labour was the separation of production and commerce, the formation of a special class of merchants; a separation which, in the towns bequeathed by a former period, had been handed down and which very soon appeared in the newly formed ones. With this there was given the possibility of commercial communications transcending the immediate neighbourhood, a possibility, the realisation of which depended on the existing means of communication, the state of public safety in the countryside, which was determined by political conditions (during the whole of the Middle Ages, as is well known, the merchants travelled in armed caravans), and on the cruder or more advanced needs (determined by the stage of culture attained) of the region accessible to intercourse.
With commerce the prerogative of a particular class, with the extension of trade through the merchants beyond the immediate surroundings of the town, there immediately appears a reciprocal action between production and commerce. The towns enter into relations with one another, new tools are brought from one town into the other, and the separation between production and commerce soon calls forth a new division of production between the individual towns, each of which is soon exploiting a predominant branch of industry. The local restrictions of earlier times begin gradually to be broken down.
It depends purely on the extension of commerce whether the productive forces achieved in a locality, especially inventions, are lost for later development or not. As long as there exists no commerce transcending the immediate neighbourhood, every invention must be made separately in each locality, and mere chances such as eruptions of barbaric peoples, even ordinary wars, are sufficient to cause a country with advanced productive forces and needs to have to start right over again from the beginning. In primitive history every invention had to be made daily anew and in each locality independently. How little highly developed productive forces are safe from complete destruction, given even a relatively very extensive commerce, is proved by the Phoenicians, whose inventions were for the most part lost for a long time to come through the ousting of this nation from commerce, its conquest by Alexander and its consequent decline. Only when commerce has become world commerce and has as its basis large-scale industry, when all nations are drawn into the competitive struggle, is the permanence of the acquired productive forces assured.”