in railways, trams, roads, ports, telegraph, schools and urban services. The population of Sydney and its suburbs grew from 95,600 in 1861 to 386,900 in 1891. The city developed many of its characteristic features. The growing population packed into rows of terrace houses in narrow streets. New public buildings of sandstone abounded, including at the University of Sydney (1854–61), the Australian Museum (1858–66), the Town Hall (1868–88), and the General Post Office (1866–92). Elaborate coffee palaces and hotels were erected. Exotic plants such as jacarandas and frangipani were introduced in parks and gardens. Daylight bathing at Sydney's beaches was banned, but segregated bathing at designated ocean baths was popular. Drought, the winding down of public works and a financial crisis led to economic depression in Sydney throughout most of the 1890s. Meanwhile, the Sydney-based premier of New South Wales, George Reid, became a key figure in the process of federation. State capital (1901–present) When the six colonies federated on 1 January 1901, Sydney became the capital of the State of New South Wales. The spread of bubonic plague in 1900 prompted the new state government to modernise the wharves and demolish inner-city slums. The outbreak of the First World War in 1914 saw more Sydney males volunteer for the armed forces than the Commonwealth authorities could process, and helped reduce unemployment in the city. Those returning from the war in 1918 were promised "homes fit for heroes" in new suburbs such as Daceyville and Matraville. "Garden suburbs" and mixed industrial and residential developments also grew along the rail and tram corridors. The population reached one million in 1926, after Sydney had regained its position as the most populous city in Australia. The government created jobs with massive public projects such as the electrification of the Sydney rail network and building the Sydney Harbour Bridge. Sydney was more severely affected by the Great Depression of the 1930s than regional NSW or Melbourne. New building almost came to a standstill, and by 1933 the unemployment rate for male workers was 28 per cent, but over 40 per cent in working class areas such as Alexandria and Redfern. Many families were evicted from their homes and shanty towns grew along coastal Sydney and Botany Bay, the largest being "Happy Valley" at La Perouse. The Depression also exacerbated political divisions. In March 1932, when populist Labor premier Jack Lang attempted to open the Sydney