Robert Owen, born on May 14, 1771 in Newtown, Montgomeryshire, Wales, was the sixth of seven children. He stood out due to his strong dedication to aiding the impoverished while also earning profit in an unconventional manner. Recognizing the importance of a secure work environment, Owen emphasized the need for decent working conditions, livable wages, and education for employees’ children. By treating individuals with dignity, Owen believed both productivity and profits would rise.
The New Lanark community, a testament to Owen’s belief in the influence of environment on people, gained widespread recognition and proved successful. Owen not only improved the living conditions of his workers in New Lanark but also managed to boost profit and productivity. In 1824, Owen relocated with his family to the United States with the intention of realizing his utopian ideals. To achieve this, he purchased 20,000 acres of land in New Harmony, Indiana. Regrettably, Owen’s experiment with the New Harmony society ended in failure after only two years.
The failure of the community was due to the lack of individual sovereignty and private property (Gorb 131). Owen experienced both success and failure in his plans and ideas. This paper examines how Robert Owen achieved success in Scotland with the establishment of the New Lanark community, and contrasts this success with his failed experiment in New Harmony, Indiana. It also covers three aspects of Owen’s economic excellence and failures. The first topic discussed is the early years of Owen’s business career and how he became a successful manager at New Lanark.
Following this topic, I will discuss and explain Owen’s experiment with the mill at New Lanark. After that, I will explore another experiment involving the community at New Harmony. Lastly, I will discuss his followers, the Owenites of Yellow Springs.
II. Business Career Owen initially achieved success through a partnership with a machine-maker who created ‘mules’ for thread production. In a short period of time, his thread became widely recognized as the best in the country, leading him to secure a managerial position in another mill owned by Drinkwater in Cheshire. This mill employed several hundred workers.
Owen’s product was of excellent quality and his name, which was imprinted on his shipped produce, became highly regarded in the industry (Gorb 134). Owen’s ability to manage the administrative methods of the factory system at a young age is one of the factors that contributed to his success in this field. He employed techniques that were previously unfamiliar to most men who were pioneers in this new, formal organization (Gorb 134). During that time, it was commonly believed that only religious conviction and strict laws could control the inherent disorder and laziness of the impoverished (Pickering XVI).
Owen had a natural talent for interacting with different individuals, particularly his loyal staff. He prioritized his employees above all else, even financial gain, and recognized the importance of fostering a positive working atmosphere. By doing so, he believed that employees would be motivated to work harder, ultimately leading to superior products. In 1799, Robert Owen acquired fifty percent of the Dale factory property in New Lanark, Scotland. Concurrently, he entered into marriage with Anne Caroline, who happened to be David Dale’s daughter.
David Dale, the founder and owner of the mill at New Lanark, was in charge until his death in 1806. Owen implemented various innovations to improve both the physical and social conditions within the community. New Lanark, famously known as “Happy Valley” (Pickering XIV), was a highly successful experiment. During his early years, Owen worked diligently and used his creative abilities to rise from humble beginnings and achieve a small fortune. He was recognized as a pioneer in cotton spinning, a contribution that greatly aided Britain’s ascent to industrial dominance. Owen’s dedication and hard work ultimately led to remarkable success.
Both Europeans and Americans became aware of Owen’s remarkable achievements and aspirations. By the age of forty-six, he had accumulated a substantial wealth. Consequently, in the second stage of his life, he assumed various roles: prophet, socialist, secularist, feminist, and trade union organizer. Owen’s intense inclination towards philanthropy prompted him to utilize his riches to challenge prevailing societal conventions and promote a novel society founded on economic and social fairness, stability, and parity. His ultimate objective was to eradicate poverty permanently (Pickering XV).
Robert Owen was known for his opposition to unrestricted trade and laissez-faire policies. He was also famous as a Utopian thinker. However, his ideas faced criticism from many people, including fellow manufacturers like Arkwright and Strutt. These manufacturers opposed any additional restrictions beyond the twelve-hour daily limit for workhouse apprentices set by Peel’s 1802 Act (Pickering XVI).
Owen aimed to spread the New Lanark community principles throughout Europe by implementing a law regulating work hours. However, certain individuals argued that workers were immoral and lacked discipline when it came to their leisure time. These opponents opposed the idea since they believed that workers would exploit breaks and reduced hours, ultimately restricting productivity. They feared that workers would lose focus on their job responsibilities. Conversely, Owen firmly believed that wealth was generated through labor, not capital. Regrettably, his adversaries effortlessly thwarted Owen’s endeavors.
Even at public meetings called to examine the distressed state of the laboring population, critics rejected Owen’s view on taxes to assist the poor (Pickering XVI). Owen’s efforts in supporting the working population were being overlooked and overshadowed by his critics, causing his ideas to lose traction. III. New Lanark The mill of New Lanark was established in 1785 by Dale and Richard Arkwright. The falls of the Clyde provided ample water-power, making the community highly appealing and enabling the operation of the mill machinery.
At the time, this was the largest cotton-spinning business in Britain. Out of the two-thousand individuals affiliated with the mill, five-hundred were children, working as young as five years old. After Dale’s passing in 1806, Owen established a new partnership, granting him approximately forty percent of the company’s profits. Despite earning substantial profit, Owen prioritized his employees. He aimed to eliminate misconduct with minimal penalties and enhance the living and working conditions for his workers (Gorb 129).
Despite Dale’s educational efforts, life at the mill was unpleasant. The working days were still long, the goods in the company store were both substandard and expensive, and the housing was of poor quality (Pickering XV). Owen cared deeply for his workers to the extent that when an American cotton embargo caused production to be hindered for a couple of months, he still made sure to pay his employees their full wages (Pickering XV). Despite this risk impacting his profits, Owen believed that addressing the conditions of the community was necessary for his plan to succeed.
The reason for his numerous innovations that enhanced the community’s working and living conditions was because organizing the community posed challenges. Firstly, Owen lacked full control over New Lanark. Secondly, selecting suitable assistants proved to be a difficult task. Recognizing that the previous mill managers were uninterested in his ideas, Owen discontinued his efforts to collaborate with them after a few months and enlisted Robert Humphreys instead.
Humphreys, who had previously managed Drinkwater’s mill with Owen, faced his greatest obstacle with the workers in New Lanark and their families, who made up almost two thousand employees. At first, the people were uncooperative and disinterested in both the work and the culture, resulting in a lack of harmony within the community. Owen’s status as a Welsh-Englishman caused him to be seen as an outsider by the Scottish working class and was met with immediate distrust. Additionally, they found his speech hard to comprehend (Cole 53).
During his first year as manager of New Lanark, Owen implemented three reforms. The first reform aimed at improving the physical infrastructure of New Lanark, while the second one aimed to enhance output and productivity. The final reform was aimed at transforming a “wretched society” into a civilized community. The main sources of misery and ill health were found in inadequate housing and poor nutrition. Owen tackled this issue by constructing new and improved houses to accommodate larger families. Additionally, an extra story was added to each house to address overcrowding.
Owen undertook various initiatives to improve the village. Firstly, he ensured that the streets were cleaned and paved as needed. Additionally, he purchased large quantities of coal and sold it at affordable prices to the villagers. Furthermore, he established a centralized company store where the residents could purchase clothing, food, and whisky. Owen diligently managed the store, ensuring that prices were twenty-five percent lower than those offered by private storekeepers. Despite this, he still generated ample profits to maintain the community school. Though it was a challenging task to deter a Scottish man from consuming whisky, Owen made a commendable effort.
With the belief that superior living standards would boost production, he took the initiative to improve his employees’ conditions. Additionally, owing to his concerns about the behavior of the community, he appointed caretakers to monitor the streets and report instances of drunkenness, theft, and disorderly conduct. He realized that high standards were crucial in achieving success in New Lanark. Fines were imposed for irregular sexual relations, and these fines were contributed to a common fund supporting healthcare and education. Owen ensured that free medical services were provided, with employees contributing a small portion of their wages.
To further reduce absenteeism and laziness, a stricter system of stock and output checks was implemented, as suggested by Pickering XIX. For enhanced productivity, the factory layout was improved and daily operation reports were made mandatory across all departments. Additionally, a unique method devised by the author to motivate employees involved a four-sided wooden block, measuring approximately two inches in length, with each side colored differently (Cole 56). These colors included black, blue, yellow, and white (Cole 56).
The effort of each individual worker was represented by different colors, with lighter blocks indicating higher productivity. As the changes implemented in the community started to take effect, the fame of New Lanark began to spread across Europe. The mills were financially successful, contributing to Owen’s growing reputation and granting weight to his opinions on national affairs (Gorbes 142). Education held great importance to Owen in the community, leading him to construct schools that served as daycares for children whose parents worked in the mills.
Owen’s belief was that through education, the poor could secure adequate employment to sustain themselves. To impact the children in his community, Owen established schools (Gorb142). These schools welcomed children as young as two years old, potentially making them the first infant schools. Remarkably, the teaching methods employed were progressive and aligned with Owen’s Utopian ideals. The students utilized books, engaged in singing, dancing, and play. The school offered free education and maintained equality among its attendees. While attendance was not obligatory, a majority of the children in the community chose to attend.
Owen’s financial success can be seen through the various refinancing that the New Lanark mills went through. According to Gorb (145), after ten years, the original partnership managed by Dale of New Lanark generated profits of 60,000 pounds, after paying a five percent annual return on invested capital. The business was then purchased by a new partnership for 84,000 pounds, with Owen receiving forty percent of the profit at that time. However, four years later, the partnership collapsed due to Owen’s disagreement with his partners regarding his “innovations” (Gorb 145).
Owen resigned from his position as a mill manager and sought to reorganize after the second partnership collapse. After a few years, Owen purchased the property of New Lanark for 150,000 pounds. The business generated a profit of 160,000 pounds in four years, after accounting for a five percent interest payment on the capital. Although Owen’s community in New Lanark was successful, it did not expand as he originally envisioned throughout Great Britain.
In 1824, instead of continuing his efforts to reform Great Britain, Owen decided to sail to the United States to pursue his vision of creating a utopian community. The 1820’s marked a time when the United States appeared to Europeans much like California did at a later time to Americans. It was a land of boundless opportunity, abundant natural resources, limited government intervention, and a culture of experimental ideas ranging from rational to eccentric. Owen’s beliefs were widely recognized.
The New Lanark experiment gained publicity and caused excitement among educational reformers in Philadelphia (Cole 144). IV. Following the New Lanark community, Owen attempted to establish the New Harmony community in America, but his attempt was unsuccessful within a few years. In America, Owen used his fortune from New Lanark to purchase 20,000 acres of land in New Harmony, Indiana. The establishment and structure of the Owenite community in New Harmony, Indiana were influenced by William Maclure and Richard Flower, who visited New Lanark.
William Maclure, a Scottish businessman, conducted a geological survey of various states in the Union and established the Philadelphia Academy of Science (Cole 145). Richard Flower, an English radical journalist, migrated to America and established a community in Edwards County, Illinois (Cole 146). Later, Flower partnered with Owen and Maclure. Owen’s endeavor in creating a community started in 1825 and concluded three years later. In New Harmony, both men and women in the community enjoyed equal treatment.
To motivate his workers, he introduced a system called “time money” and “time stores,” which are also known as the truck system. The currency used in New Harmony was based on the amount of time a worker spent laboring and could be traded for goods and services equivalent to the labor provided. This approach aimed to boost profits in the community and cover expenses like education and healthcare. Despite Owen’s efforts to implement his successful ideas from New Lanark and create a similar outcome in New Harmony, the community failed within a few years.
New Harmony was a chaotic and disorganized endeavor, largely due to Owen’s own missteps. One of the major mistakes made was the lack of screening for potential settlers; anyone who applied was accepted into the community. This resulted in an influx of inexperienced individuals joining. William Owen, who took charge of the community in his father’s absence, wrote a letter stating that there was a shortage of housing for the residents.
In his statement, he mentions that there were already enough inexperienced settlers and expresses the need for various skilled workers such as masons, bricklayers, wheelwrights, carpenters, machine-makers, potters, and cooks. Additionally, one of his errors was not estimating the amount of money to be invested in the community and not reaching a clear agreement on contributions from himself and Maclure. This mistake caused numerous disagreements between Maclure and Owen regarding financial difficulties. Furthermore, both individuals had differing views on education. Owen focused on infant schools and gradually expanded to lectures for adults on various subjects that encompassed larger and more cosmic themes (Cole 154).
Works Cited
Page Brown, Paul. Twelve Months in New Harmony. Philadelphia: Porcupine Press Inc, 1972.
Cole, Margaret. Robert Owen of New Lanark. New York: Oxford University Press, 1953.
Gorb, Peter. “Robert Owen as a Business Man.” Harvard University, 1951.
Pickering, William. Owen Vol. 1 Early Writings. London, 1993.
Pickering, William. The development of Socialism. London, 1993.
