The correct response regarding the period of early industrialization from the 1830s to the 1850s would be:
E: Merchant capitalists initially used the "putting out" system to farm out piecework for people to do in their homes.
This answer accurately reflects the organization of labor during early industrialization, where tasks were often outsourced to individuals working from home before the rise of factory production. The other options do not accurately describe the complexities or realities of the workforce and industrialization during that time. For instance, while new technologies emerged, they did not completely replace older technologies at once (Option A). Worker discontent was indeed rising, leading to more strikes, not less (Option B). Entrepreneurs often relied on various sources for capital, not exclusively on wealthy American millionaires (Option C). Additionally, the workforce was diverse and not limited to white males as implied in Option D.