Can Capitalism Survive?. Benjamin A. Rogge

Rappites had lived for their first ten years in America and from the citizens of which city they had apparently suffered numerous indignities. Unfortunately, perhaps, Pittsburgh still stands, sustained no doubt by the combined strength of the United States Steel Company and Mean Joe Greene.

      Arising from their knees, where we have kept them for too long, these sturdy souls set to work with a will to bring order to the wilderness. How well they succeeded can be seen in the fact that ten years later Harmony was clearly the most prosperous place in the entire region. The Rappites sold their many products throughout the Mississippi valley—wheat, hides, horses, hogs, shingles, linen, tobacco, furniture, and whiskey reputed to be the best in the West—a whiskey that they themselves were forbidden even to sample for taste. They had their stores in Vincennes, Shawnee-town, and St. Louis, with agents in Pittsburgh, Louisville, and New Orleans.

      How were these miracles accomplished at a time when Indianapolis was a wilderness and Fort Wayne a place where the whites dressed like Indians and wore scalps at their belts? By a shrewd mixture of communism, the capitalist marketplace, religion, superstition, and the autocratic driving force of George Rapp. Rapp taught his followers obedience, humility, and self-sacrifice; he also used every trick in the bag—not excluding force—to keep his followers in line. We are told (in a probably apocryphal story) that when his only blood-line son broke the vow of celibacy, he had him forcibly emasculated, and the impetuous young man died in the process. Rapp also had frequent visitations from obliging angels who told him what his followers must do. The footprints of one of the heavier of those angels can still be seen impressed in a limestone slab in modern New Harmony (the angel involved was no less than the angel Gabriel). He also had built various tunnels under the settlement, and the young Rappite who thought that he might rest for a moment, perhaps to reflect on the dubious privilege of celibacy, might find himself confronted with the furry head of his ubiquitous leader, emerging from the bowels of the earth to reproach him for having yielded to temptation.

      In 1825, Rapp, discouraged by the unfriendly nature of the malaria-bearing mosquitoes and the citizens of Evansville and Princeton who surrounded him, decided to move his flock again and sold the whole operation for $150,000. He led his followers back toward the hated Pittsburgh, where they founded a new community, appropriately labeled Economy.

      So much for the first story. Now for the second. It starts on January 1, 1780, in New Lanark, Scotland. A rising young industrialist, Robert Owen, has just assumed control of the New Lanark textile mills. In a new twist on an old story, now that Owen and his partners have purchased the mills, he marries the daughter of the previous owner.

      Robert Owen also sees visions, but instead of visions of the millennium, he envisions a paradise here on earth, “a new existence to man” to be attained by surrounding him with superior circumstances only. The mind of the child is a blank page, a tabula rasa, says Owen; let only the rational, the pleasant, the good be written on that page, and the world can be transformed in one generation.

      Unrealistic? Impractical? Not so, says Owen, and goes to work on the people of New Lanark, particularly the children. He reduces the hours of work in the mills, organizes schools for the children (where the two teachers can neither read nor write and hence are uncorrupted by unnatural, non-Rousseau mankind), replaces the whip in the mills with various colored blocks which indicate whether a given worker has been good or bad, and sends his inspectors to check on the cleanliness of each home. This his fellow industrialists might have forgiven him had he not also made an incredible amount of money in the process. His textiles command a 50 percent premium in the market and he recoups his investment in four years’ time. Philanthropy is proved to be practical, and modern industrial psychology is born. From Russia comes Grand Duke Nicholas to survey the wonders of New Lanark. The Duke of Kent, whose daughter is to rule England for over sixty years, and who is neither more nor less off his rocker than the other offspring of that addled rustic, George III, is an enthusiastic disciple of Owen’s and a close personal friend. New Lanark is soon known throughout the world.

      For most men this would be enough, but Owen is a born chaser after the immortal butterfly. New Lanark today; the world tomorrow. In his book, New View of Society, he presents his science of society, complete with a rational deistic religion, modified free love, abolition of private property, and rectangular communities of two thousand people. Goaded by his critics, he determines to prove the practicability of his scheme, and in 1824 he completes arrangements to buy our old friend, Harmony, from the Rappites for $150,000. Thus, New Harmony is launched, and with it our third story.

      This third story is short, like the life-span of the experiment it describes. No model community was ever launched with more fanfare. In the early spring of 1825, Robert Owen delivered an address in Washington, D.C., on his plans to redeem the world. In the audience were most members of both houses of Congress, the judges of the Supreme Court, President John Quincy Adams, and most of his cabinet members. An invitation was issued to all who shared Owen’s desire for a new state of society to join him in New Harmony. Many responded, including some of the best-educated men of the day.

      The old Harmony had been composed of ignorant, superstitious peasants. New Harmony was composed of many men of brilliance, including of course Robert Owen, the leading industrialist of the world. The Rappites had had to tame a wilderness. The Owenites were moved into one of the most prosperous pieces of real estate west of the mountains. The Rappites were just putting in their time until the world came to an end; the Owenites were launching the Brave New World. The Rappite settlement lasted ten years and was many times more prosperous when it ended than when it began. The New Harmony experiment lasted less than three years and was a social and financial disaster.

      It is instructive to follow the chronology of events. After his triumph in Washington, Owen made his way to New Harmony. In April 1825, in the old Rappite church, he announced, “I am come to this country to introduce an entire new system of society; to change it from an ignorant, selfish system to an enlightened social system which shall gradually unite all interests into one, and remove all causes for contest between individuals.” He proposed to establish a “new empire of peace and goodwill,” which would lead to “that state of virtue, intelligence, enjoyment and happiness which it has been foretold by the sages of the past would at some time become the lot of man.” The truth of his principles would spread “from Community to Community, from State to State, from Continent to Continent, finally overshadowing the whole earth, shedding light, fragrance and abundance, intelligence and happiness upon the sons of man.” Here is the way it was expressed in an Owenite poem:

      Ah, soon will come the glorious day,

      Inscribed on Mercy’s brow,

      When truth shall rend the veil away

      That blinds the nations now.

      The face of man shall wisdom learn,

      And error cease to reign:

      The charms of innocence return,

      And all be new again.¹

      However, Owen was no foolish optimist; he did not expect this to come about immediately; on the contrary, he admitted that the whole task would probably take at least three years. He then offered the community a constitution (which provided for something less than the ultimate communism), appointed a Preliminary Committee to manage the affairs of the society, issued an invitation to “the industrious and well-disposed of all nations” to come to New Harmony—and promptly took off for England.

      Many did respond to this generous invitation, but I must report to you, in sadness, that not all who did so were “industrious” or “well-disposed.” Some were indeed attracted by the intellectual excitement of the society—but were less than excited by the associated labor in the dairy barns. Others were drawn by the alluring combination of free food and free love—neither of which proved in fact to be readily or long available in New Harmony.

      In the meantime, though, sustained by the generosity of Robert Owen and William Maclure (a scholarly and wealthy convert to Owenism), the society managed to survive through 1825. The New Harmony Gazette (the uncritical voice of Owen’s philosophy and Owen’s optimism) reported that various businesses and manufacturers were “doing well” but regrettably only “soap