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The development of the town as "well as the prosperity of its inhabitants is due to the setting up of the port (1851) and of the ship repair shop (1858) which was the first in our country and became the centre of the future shipyard which was to become the most important one in the 1914 Romania and one of the most significant shipyards on the Danube. In recognition of the importance of the port and of the economic development of the town, Prince Cuza establishes here the first commercial circumscription (1863). Being close to the Iron Gates Canal and to te Bucuresti - Craiova - Timisoara railway, the port and the town of Severin become a powerful transit communication junction as it is the place where ship convoys are organized up-stream and downstream on the Danube-
1882 is the year when the Romanian railway and Depot make their appearance. The are followed by the mills erected on the bank of the Danube (such as ,,Moara de Foe" in 1876) and by the beer Factory (1856-1858), as well as the Alcohol factory at Banovita (1891). After 1900, the Candy factory (1902), the Slaughterhouse, the Tanning House of the Damianoff Brothers (1906), the Bakery and the Dairy products factory are also erected. After I960, the town economy grows richer when the Wood Processing Plant complex, the Cellulose and paper Mill as well as the Heavy Water Plant (ROMAG) and a thermo-electric power station are also built, during the last decades of the last century.
The economic development also included the coming into being of some banking institutions such as a branch of the Romanian National Bank (1899), the Bank of Severin (1904) and the Commercial Bank A particular problem the municipality had to solve was that of the town power supply. At the very beginning this was ensured by means of casks with water coming from the town fountains and later, from a well that was located in the Radu-Negru square and which was wind powered. It was only in 1910 that the water plant and the Water Tower started to be erected, the water source being the Danube itself.
Two of the public-buildings which are emblematic for the town, the Water Tower and the Hall were erected between 1910-1913 and 1904-1906, respectively. The building project of the former belonged to the engineer Elie Radu, while the architecture plants for the latter were drawn up by C.I. Gabrielescu.
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