According to the Ottoman law of 1772, the blacksmith's trade was among the first in Gabrovo that established its guild organization. And some legends, told in the folk songs, also speak that the smith's trade was in the base of the economic progress of the town. The most popular among them tells us that Racho the Blacksmith from the village of Bozhentsi, who first settled on the road leading through the Balkan range, established Gabrovo. The iron-smithery was the basic occupation and for the population in the neighbouring villages and hamlets Nova Mahala, Baevtsi, Belentsi, Varchevtsi, Etara, Ilevtsi, Negentsi, Stoikovtsi, etc.
      To the 60s of 19th c. the number of the smithies in Gabrovo region exceeded 500, as about 360 of them were located in Gabrovo. At the same time in the village of Nova Mahala out of 247 male population, 106 were blacksmiths. After the Crimean War (1853-1856) as a result of the import of European goods of higher quality, the cutlery and other smith's crafts began gradually falling away.
      The articles of Gabrovo cutlers were produced out of iron and steel. Knives without steel were not made, because the guild's rules did not allow it.
      According to the way, in which the steel welds together with the soft iron, the articles fall into three types:
      - In the first type, the iron and the steel are welded together and forged thus, that the steel forms the cutting part and the point of the blade. This way of welding of the steel and the iron is called "kainak", and the knives produced this way-"kainaklii". Thus cheaper knives for largescale necessities were made.
      - Knives of the second type were made as the steel and the iron for the blade was forged several times until it became a homogeneous mass. Thus high-quality articles for armaments (swords, yataghans) and for professional purposes were made.
      - In the third type of knives, the blades were forged out only of steel pieces. Such were the razors and some special types of articles.


      The greatest variety of knives were produced in Gabrovo, the village of Nova Mahala took the second place and then the rest settlements.
      In his researches, the historian of Gabrovo Dr. Petar Tsonchev had it that in their variety Gabrovo knives exceeded150 types. Unfortunately, most of them are not preserved today and they are known only as names.
      "kulaklii" - knives with split extension, like ears, of the rear part of the haft, made of horn, bone or metal alloys.
      "kokoni" - luxuriously made, elegant relief formed knives of smaller sizes with richly decorated hafts, made out of white or coloured bone or horn.
      Rousse's, Vidin's, Serbian, German, Montenegro's, etc. knives - various types of knives, named after the place of their sale or the origin of the model
      Butcher's, cooper's, razors, choppers, table knives - according to their functional use
      Double, triple - universal knives of different sizes, placed in twos or threes together in one scabbard
      Balance knives - knives with brass haft, in which a balance mechanism (of graduated lever with a small hook, hung on a stretched spring) is mounted. They were for weighing of small weighs.
      Penny knives - small cheap knives with haft of plum or beech tree, sold at the price nine numbers per a penny
      A great quantity of penknives were also produced ("soiki", "chekii"). The penknife is a smaller knife, which blade folds and hides partially in the haft, made of wood or horn. More famous among them were:
      Baevski knives - produced in the hamlet Baevtsi
      Belenski knives - produced in the hamlet Belentsi
      Midwives' knives - used by the midwives to cut the navel string of the newborn and after that they were not used
      Horny knives - luxurious jack-knives with hafts of deer's horns
      Scissors were the third type of articles made by the Gabrovo cutlers. Various types of scissors are made, intended as for house and everyday necessities as well as for professional purposes.
      Usually, the cutlers' articles are made in various sizes, most often in three sizes.
      Their hafts are made in of wood, horn, bone and brass, as the wooden hafts are called "sapove" and the brass, horn and bone hafts-"chereni".
      The work of Gabrovo cutlers is original. People do remember neither in the old times, nor in newer times for coming of masters from other places to bring something new or to make improvements. In return the traditions in the craft are respected and preserved up to present day.
      And today hereditary masters work in the original cutler's workshop, transferred in the museum "Etar" from the village of Nova Mahala.
      St. Athanas (celebrated on 18th of January) is the patron-saint of the cutlers and all blacksmiths.