from Bohemia. The economy of Prague continued to improve during the 18th century. The population increased to 80,000 inhabitants by 1771. Many rich merchants and nobles enhanced the city with a host of palaces, churches and gardens full of art and music, creating a Baroque city renowned throughout the world to this day. In 1784, under Joseph II, the four municipalities of Malá Strana, Nové Město, Staré Město, and Hradčany were merged into a single entity. The Jewish district, called Josefov, was included only in 1850. The Industrial Revolution produced great changes and developments in Prague, as new factories could take advantage of the coal mines and ironworks of the nearby regions. A first suburb, Karlín, was created in 1817, and twenty years later the population exceeded 100,000. The revolutions in Europe in 1848 also touched Prague, but they were fiercely suppressed. In the following years, the Czech National Revival began its rise, until it gained the majority in the town council in 1861. Prague had a German-speaking majority in 1848, but by 1880 the number of German speakers had decreased to 14% (42,000), and by 1910 to 6.7% (37,000), due to a massive increase of the city's overall population caused by the influx of Czechs from the rest of Bohemia and Moravia and the increasing prestige and importance of the Czech language as part of the Czech National Revival. 20th century First Czechoslovak Republic World War I ended with the defeat of the Austro-Hungarian Empire and the creation of Czechoslovakia. Prague was chosen as its capital and Prague Castle as the seat of president Tomáš Garrigue Masaryk. At this time Prague was a true European capital with highly developed industry. By 1930, the population had risen to 850,000. Second World War Hitler ordered the German Army to enter Prague on 15 March 1939, and from Prague Castle proclaimed Bohemia and Moravia a German protectorate. For most of its history, Prague had been a multi-ethnic city with important Czech, German and (mostly native German-speaking) Jewish populations. From 1939, when the country was occupied by Nazi Germany, Hitler took over Prague Castle. During the Second World War, most Jews were deported and killed by the Germans. In 1942, Prague was witness to the assassination of one of the most powerful men in Nazi Germany—Reinhard Heydrich—during Operation Anthropoid, accomplished by Czechoslovak national heroes Jozef Gabčík and Jan Kubiš. Hitler ordered bloody reprisals.