This decay of the Guilds, however, is not of primary importance for those who seek to learn lessons from their experience. If we would judge them and learn from them, we must study them as they were in the time of their greatest prosperity and power, before the coming of capitalistic conditions had broken their democracy in pieces and destroyed their essential character. Viewed in this aspect, the Guild system was essentially a balance, made the easier to maintain because it was not so much a balance of powers between different groups of persons with widely divergent interests as a balance between the same persons grouped in different ways, for the performance of different social functions. The municipal authority was, as a rule, largely dominated by the Guilds; and in turn the Guilds were largely dominated by the civic spirit. The distinction between producer and consumer was important; but it was not so much a distinction between opposing social classes as between friendly and complementary forms of social organization. In proportion as this was not the case, the balance on which the Guild system rested tended to break down; but the occasion of its breakdown was not the irreconcilable opposition of producer and consumer, but the struggles within the Guilds themselves between traders and craftsmen, or between exclusive and democratic tendencies. The mediaeval organization of industry, then, was based upon the twin ideas of function and balance. It was an organization designed for an almost self-contained local type of Society, and before the coming of national and international economy it broke down and fell to pieces. As a local system of organization it reached its greatest perfection in those countries in which town life was strongest and national government weakest (_e.g._ in the Hanse towns of Germany; in Italy, and in Flanders). In this country the towns never possessed the strength or the independence necessary for the perfect development of the Guild system; but even so all the essential principles of the Guilds were operative.