Historians have properly considered the period of sectional strife to be a germinal source of major determinative forces in American history. Yet, preoccupation with the Civil War and Reconstruction, their causes and consequences, has so dominated the interests of historians of the South that they may well have neglected or misunderstood many of the basic economic developments of the region.

Let us be more skeptical of the plausible and widely held assumptions that the war was responsible for the economic institutions of the New South or that radical Reconstruction can be held accountable for many of the major economic problems of the post-Reconstruction era. The primary purpose of this article is to treat in summary fashion the broad developments in one southern industry, developments which in themselves suggest that the time has arrived to study southern economic development for its own sake.

If one remembers Count Detlev von Einsiedel's character and achievements, as described in the first installment of this article, one will not be surprised that under his leadership a spirit of scientific enlightenment, of restless improvement, and of innovation came to permeate the Lauchhammer Works so that it became one of the leading German iron works. To be sure, genuine primary innovation was rare, as it is by necessity. Only in the case of casting figures and in that of enameling iron utensils was something brought into existence in the Lauchhammer plants that had never existed before. But on top of that, there were numerous derivative innovations, i.e., innovations as far as that particular part of Germany was concerned. Or to put it differently, the elder Count Einsiedel transferred to Saxony achievements made in the most advanced areas of eighteenth-century iron industry. It is from this point of view that the following presentation must be read, a presentation in which the Count's primary innovations, previously described, are not mentioned again.

A good deal has been written about general commerce between Britain and China in the mid-nineteenth century. But little is available to illuminate the problems of trading as they confronted particular persons or commercial Houses. The surviving records of Rathbone, Worthington and Co. make possible a study of the question: what sort of calculation did rational men attempt in order to turn to profit these new and inchoate markets?