the first education institution in the Russian Empire in which the teaching of the Lithuanian language was officially started. Following the Industrial Revolution, at the end of the 19th century, the first factories were established in the city, and industry began to make use of modern machinery. As products were oriented towards the mass market, banking intensified and commerce increased. The educational system became more accessible, and literacy increased, as well. By the end of 19th century - the beginning of the 20th century, Panevėžys became a strong economic and cultural center of the region. At the time it was the fourth most important city in Lithuania (excluding Klaipėda). Panevėžys also was a center of operations by local knygnešiai (book smugglers). In 1880, Naftalis Feigenzonas established the first printing house in Panevėžys. At the end of the book prohibition, one of the Lithuanian book smugglers – Juozas Masiulis – in 1905 opened the first Lithuanian bookstore and printing house. The building is still a landmark of Panevėžys, and local people are proud of this heritage, symbolized in a bookstore that has been functional for more than 100 years. 1918–1941 Volunteers of the Lithuanian Armed Forces had liberated the city for the first time from the Bolsheviks' forces on 27 March 1919 during the Lithuanian Wars of Independence and raised flags of Lithuania. Between the World Wars, in the newly independent Lithuania, Panevėžys continued to grow. According to the Lithuanian census of 1923, there were 19,147 people in Panevėžys (19,197 with suburbs), among them 6,845 Jews (36%) (in Yiddish the town's name was , transliterated as ). The Ponevezh Yeshiva, one of the most notable Haredi yeshivas in the history of the Jews in Lithuania, was established and flourished in the town. Rabbi Yosef Shlomo Kahaneman (1886–1969) was its rosh yeshiva (head) and president. Known as the "Ponovezher Rov", he was also the leading rabbi of Panevėžys. He managed to escape to the British Mandate of Palestine where he set about rebuilding the Ponevezh Yeshiva in Bnei Brak where it still exists in modern Israel. It has a very large student body of young Talmud scholars. The town's population rose to 26,200 between 1923 and 1939. On 15 June 1940, Red Army military forces took over the city, as a consequence of the forced incorporation of Lithuania into the Soviet Union. A number of political prisoners were murdered near the sugar