Koenigplatz Kennel - Collies
Both Rough and Smooth collies are descended from a localised variety of herding dog originating in Scotland and Wales. The Scottish variety was a large, strong, aggressive dog, bred to herd highland sheep. The Welsh variety was small and nimble, domesticated and friendly, and also herded goats. When the English saw these dogs at the Birmingham market, they interbred them with their own variety of sheepdogs, producing a mixture of short- and long-haired varieties. After the industrial revolution, dog ownership became fashionable, and these early collies were believed to have been crossed with the Borzoi (Russian Wolfhound) to get a more "noble" head (longer muzzle), which is today one of the true characteristics of the Rough Collie. It is not known conclusively if the Borzoi cross made it into the mainstream of the breed.
When Queen Victoria acquired a Rough Collie, after seeing one at Balmoral Castle, they were transformed into something of a fashion item. Continued breeding for show purposes drastically changed the appearance of the dogs; in the 1960s, it was a much taller dog than it is today (in the UK; in the US, the size standard has not been revised downward and dogs have remained between 24-26"). Earlier dogs were also more sturdy in build and reportedly capable of covering up to 100 miles in one day. In the UK the Rough Collie is no longer used for serious herding, having been replaced by the Border Collie, though in the United States and a number of European countries, there has been a resurgence in the use of the Collie as a working and performance dog. The Collie Club of America is one of the oldest breed-specific clubs in existence in the United States (founded in 1886). The Collie Club in England dates from 1881
Sources: AKC, Collie Club of America, and Wikapedia