This unique study determines, by means of rigorous quantitative analysis, how cycles in New England cotton textile profits, output, borrowing, and capacity affected investment—and therefore industrial growth—during the nineteenth century. The firms studied were transitional forms between owner-managed companies and the modern corporation. From primary sources, Paul McGouldrick has constructed standardized balance sheets and income statements for each company year by year. A painstaking comparison with a much broader sample of companies shows that trends and cycles in profit rates for companies studied were typical of the industry.