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, Texas the plan to raise much of the existing city to a sufficient elevation behind a seawall so that confidence in the city could be maintained. The city developed the city commission form of city government, known as the "Galveston Plan", to help expedite recovery. Despite attempts to draw investment to the city after the hurricane, Galveston never returned to its levels of national importance or prosperity. Development was also hindered by the construction of the Houston Ship Channel, which brought the Port of Houston into competition with the natural harbor of the Port of Galveston for sea traffic. To further