On 1 July 1917 the village of Salatiga was designated as a "stads gemeente" or small town by the Dutch East Indies government. In the colonial era, Salatiga was stratified by race. The Europeans lived near the city centre, at the "Toentangscheweg" (Toentang Road) leading to Semarang and also near to Dutch plantations in the Salatiga Afdeling. The Chinese were based near the trading centre, the Kalicacing Market, at the "Soloscheweg" (Solo Road). Native people were bound to live outside the European and Chinese communities. The education system was divided accordingly, with different schools for the Europeans, the Chinese and the natives. Salatiga was led by a "burgermeester" (mayor), assisted by "College van Burgermeester en Wethouders". There was a legislative body, the "Stadsgemeenteraad"; however, its membership was not proportional, with 8 seats for the Europeans, 1 seat for the Chinese, and only 2 seats for the natives who form the majority of the people. The economy of Salatiga was hampered by the world economic depression of the 1930s. To reduce the city's spending the salaries of government officials were cut by up to 15%. Salatiga had an important economic role as a hinterland to Semarang, providing agricultural products like coffee, rubber, cacao, cotton, spices, tobacco, wheat and vegetables to Semarang to be processed.