 By the end of the 19th century , the city of Galveston had a population of 37 @,@ 000 . Its position on the natural harbor of Galveston Bay along the Gulf of Mexico made it the center of trade in Texas . It was one of the largest cotton ports in the nation , in competition with New Orleans . Throughout the 19th century , the port city of Galveston grew rapidly and the Strand was considered the region 's primary business center . For a time , the Strand was known as the " Wall Street of the South " . In the late 1890s , the government constructed Fort <unk> defenses and coastal artillery batteries in Galveston and along the Bolivar Roads . In February 1897 , Galveston was officially visited by the USS Texas ( nicknamed Old <unk> ) , the first commissioned battleship of the United States Navy . During the festivities , the ship 's officers were presented with a $ 5 @,@ 000 silver service , adorned with various Texas motifs , as a gift from the citizens of the state . 
