Sentence:  The cutting [of letter blocks] is effected by chisels and <WSD>gouges</WSD> of the usual kinds, and is the work of a class of artizans called 'Wood letter Cutters,' or 'Wood-type Cutters.' 
Meaning of the word marked with <WSD> tags:  A chisel with a curved blade for cutting or scooping channels, grooves, or holes in wood, stone, etc.