This section is from the book "Wood-Block Printing", by F. Morley Fletcher. Also available from Amazon: Wood-Block Printing.

Fig. 3. - Drawing of the knife.
With this knife the most important and delicate work is done. All the lines of the key-block as well as the boundaries of the colour masses are cut with it, before the removal of intervening spaces.
The blade lies in a slot and is held tight by the tapered ferrule. This can be pulled off by hand and the blade lengthened by pulling it forward in the slot.
 
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