At the beginning of the twentieth century Novo mesto had less than 2200 inhabitants; the railway line was built to Novo mesto in 1894, and at the same time the savings bank, as the first monetary institution, was also built. Until the First World War the economy did not improve much. In the period between the Two Wars the industrialization was quicker, nevertheless it was still weak if compared with other towns. Nine new enterprises were established, the telephone line was built in 1921, as well as the bank, and the hydroelectric power station. The industry belonged to the light industry, among 9 enterprises there were 3 textile factories. In 1940 the building of a factory of synthetic fibres was planned, however, the occupation that followed soon after prevented the realization of this plan.