Free State of Galveston made these businesses increasingly difficult to sustain. By the end of the 1950s, this era of Galveston's history had ended. The island of Galveston, which lies on the Gulf of Mexico, held one of the first major settlements in the eastern part of what is now Texas. During the mid-to-late-19th century, it became the largest city in the state. Galveston was also an important national commercial center and one of the busiest seaports in the United States, as the Port of Galveston was able to capitalize on Texas' rapid rise in the cotton trade. Its downtown was known as the
Galveston Island would hold until nearly the end of the 19th century. Galveston for a time before the American Civil War was the largest cotton shipping port in the world and the second-largest port for immigration in the United States. In the mid-19th century, it was a major port of entry for the many Germans who entered the state. During the Civil War, the Union army seized control of the island from the South for a few months during early 1863. Confederate forces commanded by John B. Magruder expelled them from the island, and the Confederates controlled it for the remainder of