It's been around longer than I have. :grin:
I doubt that it was available in the 1700-mid 1800s though because it really is steel and steel during those times was a rare, highly sought after material reserved for tools and springs.
A couple of things to keep in mind while working with steel wool.
Of course the fine particles can ruin your eyeballs so don't wipe your eyes if your hands have steel wool fibers on them.
If you plan on using a water base stain on your wood, it is best IMO not to use steel wool to rub down the surface prior to staining.
I have personally seen the fine, almost invisible particles left in the wood grain turn to rust giving the surface a freckled appearance.
Although it is steel, the stuff is so fine, it won't cause appreciable wear if you use it in your barrel to "dull up" the edges of the newly cut rifleing. Don't worry about it, just use it, it helps a lot.
If you are going to blue the steel parts do not use fresh, newly bought steel wool to polish the part.
The new steel wool is treated with a wax/oil to prevent rusting while it's on the shelf. This wax will contaminate your part if it touches it and it will prevent the blueing from working.
The only thing I've found to remove the wax/oil is to soak it in a solution of water and muratic acid. Acetone, MEK, Lacquer thinner, Brake Cleaner and Carbon Tet won't do it.