Pennsylvania Society for the Encouragement of Manufactures and the Useful Arts

The Pennsylvania Society for the Encouragement of Manufactures and the Useful Arts was founded in Philadelphia in August 1787 by Tench Coxe, John Nicholson, Thomas Mifflin, William Bingham, and other members of the city's political, mercantile and manufacturing elite. A separate "manufacturing fund" was established under the control of a twelve-man Manufacturing Committee for the purposes of building and operating experimental factories. Over 800 subscribers contributed a minimum of £10 each, and the state later subscribed an additional £1,000.

The committee began operations under Samuel Wetherill in the winter of 1787-88. The first phase was a putting-out system, under which between 200 and 300 needy women spun flax and wool in their homes. In March and April 1788 the committee built a cotton factory at 9th and Market Streets that included four jennies of from 40 to 80 spindles and 26 handlooms. The society failed in its attempts to smuggle the secrets of the Arkwright waterframe out of England, but they did achieve some economies by concentrating production in a single factory. However, flows of work, sales, and wage payments were erratic, and the factory was destroyed by a fire of suspicious origin on March 24, 1790.

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