Harmony Society - Settlements in The United States - Third Settlement: Economy, Pennsylvania

Third Settlement: Economy, Pennsylvania

Main Article Old Economy Village

In 1824 Frederick Rapp initially purchased 1,000 acres (4.0 km2) along the Ohio River, 18 miles (29 km) northwest of Pittsburgh, Pennsylvania, for $10,000, and later bought an additional 2,186 acres (8.85 km2) for $33,445, giving the Society more than 3,000 acres (12 km2) to develop into a new community. The Harmonites named their third and last town Economy, after the spiritual notion of the Divine Economy, “a city in which God would dwell among men” and where perfection would be attained.

At Economy the Harmonists intended to become more involved in manufacturing and their new town on the Ohio River provided better access to eastern markets and water access to the south and west than they had in Indiana. By 1826 the Harmonists had woolen and cotton mills in operation as well as a steam-operated grain mill. Here, under the business acumen and efficient management of Frederick Rapp, they enjoyed such prosperity that by 1829 they dominated trade and the markets of Pittsburgh and down the Ohio River. The Harmonists' competitors accused them of creating a monopoly and called on state government to dissolve the group. Despite the attacks, the Harmonists developed Economy into a prosperous factory town, engaged in farming on a large scale, and maintained a brewery, distillery, and wine-making operation. They also pioneered the manufacturing of silk in the United States.

The community was not neglectful of matters pertaining to art and culture. Frederick Rapp purchased artifacts and installed a museum containing fine paintings and many curiosities and antiques, but it proved to be unprofitable and was sold at a loss. In addition, the Harmonists maintained a deer park, a floral park, and a maze, or labyrinth. The Harmonists were fond of music and many of the members were accomplished musicians. They sang, had a band/orchestra, composed songs, and gave much attention to its cultivation. By 1830 they had amassed a 360-volume library.

In 1832 the Society suffered a serious division. Of 750 members, 250 became alienated through the influence of Bernhard Müller (self-styled Count de Leon), who, with 40 followers (also at variance with the authorities in the old country), had come to Economy to affiliate with the Society. Rapp and Leon could not agree; a separation and apportionment of the property were therefore agreed upon. This secession of one-third of the Society, which consisted mostly of the flower of young manhood and young womanhood who did not want to maintain the custom of celibacy, broke Frederick's heart. He died within two years. It resulted in a considerable fracturing of the community. Nevertheless, the Society remained prosperous in business investments for many more years to come.

After Frederick Rapp's death in 1834, George Rapp appointed Romelius Baker and Jacob Henrici as trustees to manage the Society’s business affairs. After George Rapp's death in 1847, the Society reorganized. While a board of elders was elected for the enforcement of the Society's rules and regulations, business management passed to its trustees: Baker and Henrici, 1847–68; Henrici and Jonathan Lenz, 1869–90; Henrici and Wolfel, 1890; Henrici and John S. Duss, 1890–1892; Duss and Seiber, 1892–1893; Duss and Reithmuller, 1893–1897;Duss, 1897–1903; and finally to Suzanna (Susie) C. Duss in 1903. By 1905 membership had dwindled to just three members and the Society was dissolved.

The settlements at Economy remained economically successful until the late 19th century, producing many goods in their cotton and woolen factories, sawmill, tannery, and from their vineyards and distillery. They also produced high quality silk for garments. Rapp's granddaughter, Gertrude, began the silk production in Economy on a small scale from 1826 to 1828, and later expanded. This was planned in New Harmony, but fulfilled when they arrived at Economy. The Harmonists were industrious and utilized the latest technologies of the day in their factories. Because the group chose to adopt celibacy and their members grew older, more work gradually had to be hired out. As their membership declined, they stopped manufacturing operations, other than what they needed for themselves, and began to invest in other ventures such as the oil business, coal mining, timber, railroads, land development, and banking. The group invested in the construction of the Pittsburgh and Lake Erie Railroad, established the Economy Savings Institution and the Economy Brick Works, and operated the Economy Oil Company, as well as the Economy Planing Mill, Economy Lumber Company, and eventually donated some land in Beaver Falls for the construction of Geneva College. The Society exerted a major influence on the economic development of Western Pennsylvania.

Oil production in the mid-1860s brought the high-water mark of the Society's prosperity. By the close of Baker's administration in 1868, The Society's wealth was probably $2 million. By 1890, however, the Society was in debt and on the verge of bankruptcy with a depleted and aged membership. In addition, the Society faced litigation from previous members and would-be heirs. The Society's trustee, John S. Duss, settled the lawsuits, liquidated its business ventures, and paid the Society's indebtedness. The great strain which he had undergone at this time undermined his health and he resigned his trusteeship in 1903. With only a few members left, the remaining land and assets were sold under the leadership of Duss's wife, Susanna (Susie), and the Society was formally dissolved in 1905. At the time of the Society’s dissolution, its net worth was $1.2 million.

In 1916 the Commonwealth of Pennsylvania acquired 6 acres (0.024 km2) and 17 buildings of Economy, which became the Old Economy Village historic site. The American Bridge Company had already acquired other parts of the Society's land in 1902 to build the town of Ambridge.