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Harmony in Business: Christian Communal Capitalism in the Early Republic

Published online by Cambridge University Press:  02 March 2020

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Abstract

Scholars increasingly acknowledge the contingent, varied, complex nature of capitalism, yet overlook a viable vision of the early nineteenth-century United States: communal capitalism. Communal societies proliferated in the early United States as a way to regulate the market. The most industrious, materially successful model of this approach was George Rapp’s Harmony Society, established in 1805. Rapp was a radical Pietist, immigrating with his followers from Württemberg in order to establish a purified community that would persevere into the millennium he predicted was imminent. Despite a ban on private property, the Harmonists embraced the market, building textile factories and conducting market activity under the moniker “Rapp & Associates.” Technologically innovative, shrewd in business, and dogged in pursuit of a “divine economy,” the example of the Harmony Society helps us better understand how religious businesses helped shape the early American capitalist system and, specifically, the contributions of German Pietism to economic thought in the Atlantic world. Ultimately, we discover how the Harmonists’ communal capitalism forsook wages and private property, while embracing stocks, bonds, leases, mortgages, patents, trademarks, licenses, litigation, and contracts as they built an incredibly successful and wealthy manufacturing community in the then-western United States, even as George Rapp’s authoritarian leadership style created tensions within his workforce of immigrant women, men, and children.

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Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (https://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
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© The Author 2020. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.
Figure 0

Figure 1 George Rapp.

ExplorePAHistory.com, http://%20explorepahistory.com/displayimage.php?imgId=1-2-30C&storyId=1-9-5. (accessed January 4, 2016). Public Domain.
Figure 1

Figure 2 Original Articles of Agreement (or Association).

Pennsylvania Historical and Museum Commission, Old Economy Village Archive, 2313 (hereafter OEVA).Photo by author with permission of OEVA.
Figure 2

Figure 3 Goerge Rapp’s home (1808), Harmonie, PA

(Photo by author)
Figure 3

Figure 4 Frederick Rapp’s home (1811), Harmonie, PA

(Photo by author)
Figure 4

Figure 5 Harmonie, IN, sketched by W. Weingartner (c. 1825).

Bottom circle: factory and manufacturing activities; top center circle: first and second church buildings; top right circle: Rapp houses. OEVA, MG-185, Maps, Drawings, Sketches, and Lithographs, Map #19, 06.72.17.84. With permission of OEVA, circles added by author.133
Figure 5

Figure 6 The second church at Harmonie, IN. Sketched by Charles Alexandre Lesueur.

Ewell Sale Stewart Library, Academy of Natural Sciences, Philadelphia, PA, https://www.ansp.org/%20research/library/archives/0100-0199/lesueur136b/ (accessed June 23, 2017). Public domain.
Figure 6

Figure 7 Greek Cross Church Plan (undated).

This architectural rendering of a church building found in the Harmony Archives is very similar to the Harmonie, Indiana, church Charles Alexandre Lesueur sketched in 1826 (see figure 6). OEVA, MG-185, Maps, Drawings, Sketches, and Lithographs, OE.80.2.9. With permission of OEVA.