Germany in the 1830's gave few if any indications of its great industrial potentialities. The population was overwhelmingly rural and agrarian; Berlin was the only city containing more than 100,000 inhabitants, and the great majority of “cities” (in the legal sense) numbered less than 10,000. Nonagricultural production was carried on for the most part in the home or in small shops employing the old handicraft techniques. The pattern of foreign trade was that which has since come to be associated with “underdeveloped” agrarian nations: exports of agricultural products (grain, wool) and the output of artisanal industries, imports of manufactured goods and exotic wares. In those industries that were to lead the way in Germany's industrialization there were as yet no signs of growth. The few spinning factories that were set up in the 1820's and 1830's employed mainly English and Alsatian machinery, and sometimes foreign capital as well. Coal production lagged behind that of tiny Belgium, and was no greater than that of mineral-poor France. The small, dispersed iron industry was still almost universally conducted with the ancient charcoal technique, and the famed chemical industry was still to be born. The Zollverein was just beginning its great work of economic unification; the effective realization of its promise had to await more adequate means of transportation and financial institutions to provide capital; but by 1840 there were only a few short, isolated lines of railway and no modern credit facilities.

Most students of Jacksonian America are familiar with the Locofocos of New York through the interesting and informative history of the party which its secretary, Fitzwilliam Byrdsall, published in 1842. But Byrdsall himself was primarily interested in the antimonopoly features of his party's program, and therefore his history all but ignores the even more significant monetary policy of the Locofocos. At the present time in historical writing, it is fashionable to emphasize the role played by the Jacksonian movement as a whole in liberating the expanding American economy from the fetters of a dying mercantilistic approach to business enterprise. There is much to be said for such an interpretation. But the Jacksonians faced toward many meccas, and one of the most articulate and widely known groups which rallied around the Jackson standard—the Locofocos—cannot be trimmed to this pattern.

If problems of historical study are to be chosen on the basis of their importance in affecting the course of human affairs through time, no phase of life in Western culture during the century and a half after 1800 is more worthy of study than that of economic development. During these one hundred and fifty years there was an increment of total production within western Europe of an estimated 1,500 per cent and an increase of output per capita of some 500 per cent. At no time in history had an equal advance been made at such a rapid pace.