German industry being at this low ebb, the manufacture of leadpencils occupied but a very modest place. The first traces are to be found in the village of Stein not far from Nürnberg. As far back as the year 1726 the churchbooks mention marriages of “Pencilmakers”, subsequently also “Blacklead cutters” male and female.
Leadpencil making however was then in its very lowest state, as in no case is a large establishment mentioned, and it may be assumed that this branch of trade was only just able to maintain a precarious position in comparison with the English manufacture.
The Bavarian government however soon devoted their attention to this branch of industry and sought to advance it. In the year 1766 a Count von Kronsfeld received a concession for the erection of a leadpencil manufactory at Jettenbach.
But the manufacture, wanting as it was in material, experience and custom, still remained so insignificant, that in “Beckmanns Technologie”, which appeared in the year 1777 “Pencilmaking” merely received a quite superficial and incidental notice.
In the year 1816 the Bavarian government erected a Royal Leadpencil manufactory at Obernzell (Hafnerzell) and introduced into this establishment the French process already mentioned of using clay to consolidate the blacklead.
When the new manufacture was in full play, the government transferred the whole establishment into private hands as was intended from the commencement, though the credit of having given the impetus to renewed activity on a large scale certainly belongs to it.
The establishment is now in the possession of the renowned Regensburg manufacturer. In addition to this the leadpencil manufacture had taken root in Vienna and an establishment was formed there, in which likewise the French process of mixing the blacklead with clay was adopted.
The now so extensive leadpencil manufactory at Stein sprung from very modest beginnings. In the year 1760 namely its founder, Kaspar Faber, settled in this village of Stein three miles from Nürnberg, and in the year 1761 commenced the manufacture of leadpencils.
At that time adverse external circumstances pressed heavily upon the young manufactory, the whole possessions of its founder consisting only of a small house situated on the Rednitz and surrounded by a small garden. A judicial inventory dated 1786 still preserved in the family specifies faithfully the insignificant property possessed by them, showing a nett result of “Fifty nine florins”.