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It lies 15 miles (24 km) north of Mount Vernon, the county seat, and is part of the Evansville metropolitan area. Established by the Harmony Society in 1814 under the leadership of George Rapp, the town was originally known as Harmony (also called Harmonie, or New Harmony).In its early years the 20,000-acre (8,100 ha) settlement was the home of Lutherans who had separated from the official church in the Duchy of Württemberg and immigrated to the United States.The Harmonists settled in the Indiana Territory after leaving Harmony, Pennsylvania, where westward expansion, the area's rising population, jealous neighbors, and the increasing cost of land threatened the Society's desire for isolation. Baker, and Ludwick Shirver (Ludwig Schreiber) traveled west in search of a new location for their congregation, one that would have fertile soil and access to a navigable waterway.10, "The place is 25 miles from the Ohio mouth of the Wabash, and 12 miles from where the Ohio makes its curve first before the mouth.The town will be located about 1/4 mile from the river above on the channel on a plane as level as the floor of a room, perhaps a good quarter mile from the hill which lies suitable for a vineyard." Although Rapp expressed concern that the town's location lacked a waterworks, the area provided an opportunity for expansion and access to markets through the nearby rivers, causing him to remark, "In short, the place has all the advantages which one could wish, if a steam engine meanwhile supplies what is lacking." The first Harmonists left Pennsylvania in June 1814 and traveled by flatboat to their new land in the Indiana Territory.Under the preliminary constitution, members would provide their own household goods and invest their capital at interest in an enterprise that would promote independence and social equality.Members would render services to the community in exchange for credit at the town's store, but those who did not want to work could purchase credit at the store with cash payments made in advance.

How long it will require to accustom themselves to their new mode of living, I am unable to determine." By May 1825 the community had adopted the "Constitution of the Preliminary Society," which loosely outlined its expectations and government.

Its prominent citizens included Owen's sons: Robert Dale Owen, an Indiana congressman and social reformer who sponsored legislation to create the Smithsonian Institution; David Dale Owen, a noted state and federal geologist; William Owen, a New Harmony businessman; and Richard Owen, Indiana state geologist, Indiana University professor, and first president of Purdue University. Numerous scientists and educators contributed to New Harmony's intellectual community, including William Maclure, Marie Louise Duclos Fretageot, Thomas Say, Charles-Alexandre Lesueur, Joseph Neef, Frances Wright, and others.

The town also served as the second headquarters of the U. Many of the town's old Harmonist buildings have been restored.

Robert Owen, a Welsh industrialist and social reformer, purchased the town in 1825 with the intention of creating a new utopian community and renamed it New Harmony.

While the Owenite social experiment was an economic failure two years after it began, the community made some important contributions to American society.

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