Cron,
The tie between electricity and magnetism is what made 19th century physics!
If you pass a small current at a zillion volts thru a magnet, it will probably become re-magnetized along a new axis. If you pass that thru a non-magnet, it could become magnetized. Magnetics is a manifestation of the electron arrangement in a conductor, and is directly tied to the electrical environment around the magnet.
Can I suggest several different popular books on the development of this stuff? Faraday and others really captured the concepts. Try "Empires of Light"
http://www.amazon.com/exec/obidos/tg...75326?v=glance