Because of the founding of numerous textile factories Eilenburg next to Berlin became most important centre of Prussian textile production. The ascent to an important industrial city came mainly from the nearby Saxony. Saxon industrialists settled in Eilenburg for having duty-free access to the Prussian market. Onset urbanization caused a rapid rising of the population. The social tensions resulting from the industrialization and the huge growth of population promoted a strong labour movement. In 1849 the "health insurance support association" ("Krankenkassenunterstützungsverein") was founded. In 1850 the "food association of Eilenburg" ("Eilenburger Lebensmittelassociation") as first food cooperative of Germany and "Darlehnskassenverein" as first Credit union in Germany were founded. Carl Degenkolb, owner of a factory in Eilenburg and member of Frankfurt Parliament, instituted first German works councils voluntarily at his factory. 