<P> During the resulting Industrial Revolution, the industrialist replaced the merchant as a dominant actor in the capitalist system and effected the decline of the traditional handicraft skills of artisans, guilds, and journeymen . Also during this period, capitalism marked the transformation of relations between the British landowning gentry and peasants, giving rise to the production of cash crops for the market rather than for subsistence on a feudal manor . The surplus generated by the rise of commercial agriculture encouraged increased mechanization of agriculture . </P> <P> The productivity gains of capitalist production began a sustained and unprecedented increase at the turn of the 19th century, in a process commonly referred to as the Industrial Revolution . Starting in about 1760 in England, there was a steady transition to new manufacturing processes in a variety of industries, including going from hand production methods to machine production, new chemical manufacturing and iron production processes, improved efficiency of water power, the increasing use of steam power and the development of machine tools . It also included the change from wood and other bio-fuels to coal . </P> <P> In textile manufacturing, mechanized cotton spinning powered by steam or water increased the output of a worker by a factor of about 1000, due to the application of James Hargreaves' spinning jenny, Richard Arkwright's water frame, Samuel Crompton's Spinning Mule and other inventions . The power loom increased the output of a worker by a factor of over 40 . The cotton gin increased productivity or removing seed from cotton by a factor of 50 . Large gains in productivity also occurred in spinning and weaving of wool and linen, but they were not as great as in cotton . </P> <P> The growth of Britain's industry stimulated a concomitant growth in her system of finance and credit . In the 18th century, services offered by banks increased . Clearing facilities, security investments, cheques and overdraft protections were introduced . Cheques were invented in the 17th century in England and banks settled payments by direct courier to the issuing bank . Around 1770, they began meeting in a central location, and by the 19th century a dedicated space was established, known as a bankers' clearing house . The London clearing house used a method where each bank paid cash to and then was paid cash by an inspector at the end of each day . The first overdraft facility was set up in 1728 by The Royal Bank of Scotland . </P>

Who had the most advanced economy in the world before the 18th century