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The industrial capitalists, the new potentates, had to displace not only the guild-masters of handicrafts, but also the feudal lords, who were in possession of the sources of wealth. But though the conquerors thus triumphed, they have risen by means as opprobrious as those by which, long before, the Roman freedman overcame his patronus. The servitude of the labourer was the starting point of the development which involved the rise of the labourer and the genesis of the capitalist. The form of this servitude was changed by the transformation of feudal exploitation into capitalist exploitation.

The inauguration of the capitalist era dates from the sixteenth century. The process consisted in the tearing of masses of men from their means of subsistence, to be hurled as free proletarians on the labour market. The basis of the whole process is the expropriation of the peasant from the soil. The history of this expropriation, differing in various countries, has the classic form only in England.

The prelude of the revolution which founded the capitalist mode of production was played at the beginning of the sixteenth century by the breaking up of the bands of feudal retainers, who, as Sir James Steuart well says, "everywhere uselessly filled house and castle." The old nobility had been devoured by the great feudal wars; the new was a child of its time, for which money was the power of all powers. Transformation of arable land into sheepwalks was therefore its cry, and an expropriation of small peasants was initiated which threatened the ruin of the country. Thornton declares that the English working-class was precipitated without any transition from its golden into its iron age.

To the evictions a direct impulse had been given by the rapid increase of the Flemish wool manufacturers and the corresponding rise in the price of wool in England. At length such a deterioration ensued in the condition of the common people that Queen Elizabeth, on a journey through the land, exclaimed, "Pauper ubique jacet," and in the forty-third year of her reign the nation was constrained to acknowledge the terrible pauperism that had arisen by the introduction of the poor-rate.

Even in the last decade of the seventeenth century, the yeomanry, or independent peasants, outnumbered the farmers, and they formed the main strength of Cromwell's army. About 1750 the yeomen had vanished, and not long afterwards was lost the common land of the agricultural labourer.

Communal property was an old institution which had lived on under the ægis of feudalism. Under the "glorious revolution" which brought William of Orange to England, the landlord and capitalist appropriators of surplus value inaugurated the new era by thefts of land on a colossal scale. Thus was formed the foundation of the princely domains of the English oligarchy. In the eighteenth century the law itself became the instrument of the theft of the people's land, and the transformation of communal land into private property had for its sequel the parliamentary form of robbery in shape of the Acts for the Enclosure of Commons.