How were pencils made in 1700s?

It appears that by the 1700s some "modern" lead pencils were being created in Germany, but it is more likely that pencils of this period were graphite in some sort of wrapping such as paper, string or encased in a tube which could be wood.

You can find more info at: From: http://www.earlyofficemuseum.com/pencil_history.htm